Elon Musk, co-founder of Tesla and SpaceX and owner of X Holdings Corp., speaks at the Milken Institute Global Conference at the Beverly Hilton Hotel on May 6, 2024 in Beverly Hills, California.
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Norway’s $1.7 trillion sovereign wealth fund said on Saturday it would vote against approving Tesla Chief Executive Elon Musk’s $56 billion compensation package, which is due for a shareholder vote next week. Delaware judge invalidated earlier this year.
The fund is Tesla’s eighth-largest shareholder, according to London Stock Exchange data.
Musk’s pay, the highest paid for a CEO in corporate America, was approved in 2018 but was Judge Earlier this year, he said the amount was unfair to shareholders, calling it an “incalculable amount.”
The fund said it appreciates the “significant value generated under Mr. Musk’s leadership since grant date in 2018.”
“We remain concerned about the overall size of awards, the structure of performance triggers, dilution and the lack of key person risk mitigation,” said fund operator Norges Bank Investment Management (NBIM).
In 2018, the fund voted against the plan.
“We will continue to seek constructive dialogue with Tesla on this and other topics,” NBIM added.
The fund, which holds 0.98% of the shares worth $7.7 billion, according to fund data, has been critical of CEO pay.
Last year, the committee voted against more than half of U.S. CEO pay packages exceeding $20 million, warning that they were inconsistent with creating long-term value for shareholders.
union
The fund also said it would vote in support of a shareholder proposal calling on Tesla to adopt freedom of association and collective bargaining policies, a victory for unions seeking to exert influence over the U.S. automaker.
The vote comes as Tesla continues to face Industrial action in SwedenIts mechanics have been on strike since October 27 in one of the country’s longest labor disputes.
The Norwegian Wealth Fund, which owns 1.5% of global listed stocks, also supported a shareholder proposal in 2022 calling on Tesla to adopt policies that respect labor rights such as freedom of association and collective bargaining.
Electric vehicle manufacturers face rebound In the Nordic region, from trade unions and some retirement fund It rejected demands by Swedish machinists for collective bargaining rights over wages and other conditions.
Texas
The wealth fund voted to move the electric car maker’s domicile from Delaware to Texas. Musk seeks votes After a Delaware judge invalidated his salary.
The fund also said it would vote to support a proposal to elect Musk’s 51-year-old brother Kimbal to Tesla’s board of directors. The fund voted for his election in 2018, according to fund data.
Tesla shareholders to vote on Musk’s pay and re-election of directors including Musk brotherat the annual meeting scheduled for June 13.
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