Norway’s sovereign wealth fund, managed by Norges Bank Investment Management (NBIM), has voted against a proposal by Tesla to grant CEO Elon Musk a compensation package valued at $1 trillion. The fund, holding a 1.14% stake in Tesla worth approximately $11.7 billion, expressed concerns about the package’s size, dilution, and the lack of risk mitigation for key persons. Despite acknowledging Musk’s significant contributions, NBIM remains wary of the executive compensation structure. The rejection from NBIM adds to the challenges faced by Tesla in convincing shareholders to approve what could become the largest corporate performance pay package in history. Notably, advisory firms such as ISS and Glass Lewis have also advised against endorsing the proposal. Musk has emphasized that the compensation package is more about control than money, threatening to depart from Tesla if shareholders do not approve the plan.
Source: TechCrunch