Norwegian Wealth Fund To Vote Against Elon Musk’s Tesla Pay Package

Norway’s sovereign wealth fund, Norges Bank Investment Management, announced Saturday that it will vote against Elon Musk’s large CEO salary package at Tesla’s annual meeting on Thursday.

It’s the latest backlash against the amount of the pay package, which the firm recently valued at $44.9 billion but was worth around $56 billion in January. In May, two major shareholder advice companies, ISS and Glass Lewis, recommended voting against the package.

Musk | AP News Image

Norwegian Wealth Fund To Vote Against Elon Musk’s Tesla Pay Package

“While we appreciate the significant value generated under Mr. Musk’s leadership since the grant date in 2018, we remain concerned about the total size of the award, the structure given performance triggers, dilution, and lack of mitigation of key person risk,” Norges Bank Investment Management said in a statement published on its website. “We will continue to seek constructive dialogue with Tesla on this and other topics.”

Musk | Fortune Image

Norwegian Wealth Fund To Vote Against Elon Musk’s Tesla Pay Package

After a Delaware judge invalidated Musk’s pay deal earlier this year, Tesla requested shareholders to restore it.

The Government Pension Fund Global, which has a.98% interest in Tesla worth $7.72 billion, voted against the deal in 2018.

The fund invests earnings from the country’s oil and gas industry to ensure pensions for future generations in Norway. It is valued at 17.80 trillion Norwegian Krone ($1.67 trillion). Because of its size, the fund does not reinvest all of its money in Norway, which would overheat the economy. It invests in 72 countries worldwide.

Musk | Business Insider Image

Norwegian Wealth Fund To Vote Against Elon Musk’s Tesla Pay Package

The fund also intends to vote for several shareholder policies that management has advised shareholders to oppose, including a proposal to adopt a noninterference policy that respects freedom of association and collective bargaining, adopt a simple majority vote, declassify the board of directors, and publish reports on harassment and discrimination prevention initiatives.

SOURCE – (AP)