Norway’s sovereign wealth fund has voted against Tesla’s proposal to give CEO Elon Musk a payout worth $1 trillion.
The fund, managed by Norges Bank Investment Management (NBIM), holds a 1.14% stake in Tesla worth about $11.7 billion, according to an interim report in June.
“While we appreciate the significant value created under Mr. Musk’s visionary role, we are concerned about the total compensation, dilution, and lack of risk mitigation for key personnel, which is consistent with our views on executive compensation,” the fund said in a statement on its website. “We continue to seek constructive dialogue with Tesla on this and other topics.”
NBIM’s rejection alone may not be enough to defeat the proposal. But it’s the latest hurdle in Tesla’s long campaign to persuade shareholders to give Mr. Musk the largest corporate performance pay package in history. Advisory groups such as ISS and Glass Lewis have also recommended voting against the pay package.
Musk argued that the compensation package was not a question of money, but of management. The CEO recently made that point during the company’s third-quarter earnings call, threatening to leave Tesla if the package wasn’t approved.
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