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Norway’s sovereign wealth fund voted against Tesla’s proposal to give CEO Elon Musk a $1 trillion compensation package.
The fund, managed by Norges Bank Investment Management, owns a 1.14% stake in Tesla worth about $11.7 billion, according to its data. Mid-year deposits In June.
“While we appreciate the significant value created under Mr. Musk’s visionary role, we are concerned about the overall size of the award, the dilution, and the lack of dilution of key person risks — consistent with our views on executive compensation,” the fund said in a statement. Posted on its website. “We will continue to seek a constructive dialogue with Tesla on this and other topics.”
NBIM’s rejection may not be enough to thwart the proposal. But it’s the latest hurdle in Tesla’s long campaign to influence shareholders to give Musk the largest company-performance pay package in history. Advisory groups Like ISS and Glass Lewis also recommended a vote against the pay package.
Musk argued that the compensation package is less about money and more about control. CEO recently You made the point During the company’s third-quarter earnings call he threatened to leave Tesla if the package was not approved.