Norway’s sovereign wealth fund has voted in opposition to a Tesla proposal to offer CEO Elon Musk a compensation package deal value $1 trillion.
The fund, which is managed by Norges Financial institution Funding Administration, holds a 1.14% stake in Tesla valued at about $11.7 billion, in response to its mid-year filings in June.
“Whereas we admire the numerous worth created underneath Mr. Musk’s visionary function, we’re involved in regards to the complete dimension of the award, dilution, and lack of mitigation of key particular person threat — in keeping with our views on government compensation,” the fund stated in a press release posted on its website. “We are going to proceed to hunt constructive dialogue with Tesla on this and different matters.”
NBIM’s rejection will not be sufficient to defeat the proposal. However it’s the newest hurdle in Tesla’s prolonged marketing campaign to sway shareholders to offer Musk the most important company efficiency pay package deal in historical past. Advisory groups like ISS and Glass Lewis have additionally advisable voting in opposition to the pay package deal.
Musk has argued the compensation package deal isn’t as a lot in regards to the cash as it’s about management. The CEO just lately made that time in the course of the firm’s third-quarter earnings name and has threatened to go away Tesla if the package deal isn’t authorised.