Norway's sovereign wealth fund to oppose $1T Elon Musk pay package
Norway's sovereign wealth fund announced on Tuesday that it plans to reject the nearly $1 trillion payout to Tesla CEO Elon Musk during the company's annual shareholder meeting this week.
Musk, whose current net worth is more than $400 billion, was poised to receive a performance award worth about $900 billion and 432 million additional shares in the electric vehicle company, about a 25% ownership stake. If approved, the compensation plan would make Musk the world's first trillionaire, News.Az reports citing The Guardian.
Norges Bank Investment Management said it will vote against the compensation plan at Thursday's meeting. The world's largest sovereign wealth fund is the seventh-largest stakeholder in Tesla, holding about 1.14% stake in the company.
"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," the company said in a statement.
"We will continue to seek constructive dialogue with Tesla on this and other topics."
Denholm claimed the electric vehicle maker was at a "critical inflection" point, and that losing Musk could mean Tesla loses "significant value."
"The fundamental question for shareholders at this year's annual meeting is simple: Do you want to retain Elon as Tesla's CEO and motivate him to drive Tesla to become the leading provider of autonomous solutions and the most valuable company in the world?" she asked rhetorically.
Similar news
