- Norway’s sovereign wealth fund will oppose Elon Musk’s $56 billion pay bundle at Tesla.
- Tesla shareholders will vote on the deal on Thursday.
- Two main proxy advisor companies have additionally opposed it.
Norway’s sovereign wealth fund, operated by Norges Financial institution Funding Administration, has stated it would vote towards Tesla CEO Elon Musk’s $56 billion pay bundle at Tesla’s annual assembly on Thursday.
In a press release, Norges Bank Investment Management said, “Whereas we respect the numerous worth generated beneath Mr. Musk’s management for the reason that grant date in 2018, we stay involved in regards to the complete dimension of the award, the construction given efficiency triggers, dilution, and lack of mitigation of key individual threat.”
Norway’s sovereign wealth fund is valued at $1.7 trillion and is the eighth largest Tesla shareholder, per Reuters.
Robyn Denholm, chairperson of the Tesla Board of Administrators, wrote in a letter to shareholders earlier this week, calling for “reciprocal respect.
Musk has no “scarcity of concepts and different locations he could make an unimaginable distinction on this planet,” she wrote.
Nicolai Tangen, the the Norwegian wealth fund’s chief government, advised the Financial Times in 2022: “We’re seeing company greed reaching a stage that we have not seen earlier than and it is actually changing into very pricey for shareholders when it comes to dilution.”
Tesla shareholders will vote on Musk’s pay bundle on Thursday.
Buyers permitted Musk’s pay deal in 2018, however a choose in Delaware struck down the sum in January, calling it “an unfathomable sum” and forcing the board to reapprove it.
Final month, two massive proxy advisor companies, Institutional Shareholder Providers (ISS) and Glass Lewis, recommended voting against the package.
Referring to Musk’s fortune, Denholm stated: “That is clearly not in regards to the cash. Everyone knows Elon is likely one of the wealthiest folks on the planet, and he would stay so even when Tesla had been to renege on the dedication we made in 2018.”
Musk is the third richest person in the world, price $203 billion, in accordance with the Bloomberg Billionaires Index.
Though Tesla delivered report gross sales of greater than 1.8 million electrical autos worldwide in 2023, the EV maker has confronted elevated scrutiny in current months.
In keeping with emails obtained by CNBC earlier this week, Musk has been diverting essential sources to his different companies: social media platform X and his AI startup xAI.
Earlier this 12 months, investors accused Musk of “blackmailing” them by tweeting that he was “uncomfortable rising Tesla to be a frontrunner in AI and robotics with out having 25 p.c voting management.”
In April, Musk sacked Tesla’s total Supercharger workforce, together with senior director of EV charging Rebecca Tinucci, a transfer that was criticized by Tesla’s investors and partners.
