Norway’s $2.1 trillion sovereign wealth fund, a major Tesla shareholder, votes against Elon Musk’s potential $1 trillion compensation package.
OSLO: Norway’s sovereign wealth fund, one of Tesla’s ten largest shareholders, announced it will vote against Elon Musk’s proposed compensation package potentially worth over $1 trillion.
Tesla shareholders will decide on the pay deal at a meeting in Austin, Texas on Thursday.
Norges Bank Investment Management stated on its website that while it appreciates Musk’s visionary leadership, it has concerns about the award’s total size, dilution, and lack of key person risk mitigation.
The $2.1 trillion sovereign fund, the world’s largest, held 1.14% of Tesla shares as of June 30.
Musk’s proposed package could grant him up to 12% additional Tesla shares if specific milestones are achieved.
The deal requires Tesla to reach a market capitalisation of at least $8.5 trillion by 2035.
Tesla currently holds a market value of $1 trillion.
This marks the second time the Norwegian fund has opposed a major Musk compensation package, having previously voted against his $55.8 billion deal.
That earlier package was approved by shareholders but struck down by a Delaware court last year.
Tesla has appealed the court’s ruling. – AFP
