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Norway's trillion-dollar sovereign wealth fund to vote against Musk's $56 billion Tesla pay package

Jun 09, 2024 - businessinsider.com
Norway's sovereign wealth fund, managed by Norges Bank Investment Management, plans to vote against Tesla CEO Elon Musk's $56 billion pay package at the company's annual meeting. The fund, which is Tesla's eighth largest shareholder, expressed concerns about the size of the award, its structure, dilution, and the lack of mitigation of key person risk. This comes after a Delaware judge struck down the sum in January, forcing the board to reapprove it. Two large proxy advisor firms, Institutional Shareholder Services and Glass Lewis, have also recommended voting against the package.

Tesla has faced increased scrutiny recently, despite delivering record sales of over 1.8 million electric vehicles worldwide in 2023. Musk has been accused of diverting important resources to his other businesses and of "blackmailing" investors by demanding 25% voting control. In April, he dismissed Tesla's entire Supercharger team, a move that was criticized by the company's investors and partners.

Key takeaways:

  • Norway's sovereign wealth fund, operated by Norges Bank Investment Management, plans to vote against Tesla CEO Elon Musk's $56 billion pay package at Tesla's annual meeting due to concerns about the size of the award, performance triggers, dilution, and lack of mitigation of key person risk.
  • Two large proxy advisor firms, Institutional Shareholder Services (ISS) and Glass Lewis, have also recommended voting against Musk's pay package.
  • Despite Tesla's record sales of more than 1.8 million electric vehicles worldwide in 2023, the company has faced increased scrutiny and criticism, including accusations of Musk diverting resources to his other businesses and sacking Tesla's entire Supercharger team.
  • Musk, who is the third richest person in the world with a net worth of $203 billion, has been accused by investors of "blackmailing" them by demanding 25 percent voting control to continue growing Tesla in AI and robotics.
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