Norway’s sovereign wealth fund has voted against a Tesla proposal to give CEO Elon Musk a compensation package worth $1 trillion.
The fund, which is managed by Norges Bank Investment Management, holds a 1.14% stake in Tesla valued at about $11.7 billion, according to its mid-year filings in June.
“While we appreciate the significant value created under Mr. Musk’s visionary role, we are concerned about the total size of the award, dilution, and lack of mitigation of key person risk — consistent with our views on executive compensation,” the fund said in a statement posted on its website. “We will continue to seek constructive dialogue with Tesla on this and other topics.”
NBIM’s rejection may not be enough to defeat the proposal. But it is the latest hurdle in Tesla’s lengthy campaign to sway shareholders to give Musk the largest corporate performance pay package in history. Advisory groups like ISS and Glass Lewis have also recommended voting against the pay package.
Musk has argued the compensation package isn’t as much about the money as it is about control. The CEO recently made that point during the company’s third-quarter earnings call and has threatened to leave Tesla if the package isn’t approved.
