Topline
Norway’s sovereign wealth fund – a major Tesla shareholder – announced on Tuesday that it will vote against the electric car maker’s proposed new compensation package for CEO Elon Musk. This marks the latest investor backlash against the lucrative compensation deal, which will be worth about $1 trillion if the company achieves a series of ambitious targets over the next decade.
Norway’s sovereign wealth fund said it will vote against Tesla’s proposed $1 trillion compensation for CEO Elon Musk.
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Key facts
The fund, also known as the “Oil Fund,” said: “While we appreciate the significant value created under Mr. Musk’s visionary role, we are concerned about the overall size of the award.”
The fund said the vote was in line with its “views on executive pay” and noted it did not reduce “key person risk” – a scenario where a company is too reliant on an individual.
“We will continue to seek constructive dialogue with Tesla on these and other topics,” the statement said.
How many Tesla shares does the Norwegian sovereign fund own?
The Norwegian Government Pension Fund Global has a 1.14% stake in Teslawhich was worth about $11.7 billion in June. This isn’t the first time the fund has opposed a proposed compensation plan for Musk. In 2024, the company will have… voted against Musk’s previous compensation was worth about $56 billion. At the time, the fund’s management said its vote was “consistent” with its opposition to the same award in 2018, adding: “While we appreciate the significant value generated under Mr. Musk’s leadership since the award date in 2018, we remain concerned about the overall size of the award, its structure given performance triggers, dilution and the lack of mitigation of key person risk.”
Tangent
In premarket trading early Tuesday, Tesla’s stock price fell about 2.61% to $456.18.
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