Norway’s wealth fund, Tesla’s sixth-largest institutional investor, votes against Musk’s pay package
Norway’s Norges Bank Investment Management, the world’s largest sovereign wealth fund, said Tuesday that it voted against Tesla CEO Elon Musk’s $1 trillion pay package, ahead of the EV company’s annual shareholder meeting Thursday. The fund, which has a 1.2% stake in Tesla, is the company’s sixth-largest institutional investor, according to FactSet, and the first major investor to disclose how it voted on the matter.
Tesla is down nearly 3% premarket, amid a wider pullback in equities that’s most pronounced in AI-related stocks.
“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,” NBIM said in a statement.
Tesla’s board considers Musk’s mammoth, performance-based pay package necessary to retain Musk. For what it’s worth, prediction markets are quite certain investors will pass the proposition.
Tesla is down nearly 3% premarket, amid a wider pullback in equities that’s most pronounced in AI-related stocks.
“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,” NBIM said in a statement.
Tesla’s board considers Musk’s mammoth, performance-based pay package necessary to retain Musk. For what it’s worth, prediction markets are quite certain investors will pass the proposition.
