Norway's Sovereign Wealth Fund Challenges Musk's Hefty Tesla Compensation Package

Norway's sovereign wealth fund, managed by Norges Bank Investment Management, will vote against Elon Musk's significant CEO compensation at Tesla's upcoming annual meeting. The fund, which holds a 0.98% stake in Tesla, raises concerns about the size and structure of the pay package and plans to support several shareholder policies opposed by Tesla's management.

Norway's sovereign wealth fund, operated by Norges Bank Investment Management, has announced its intention to vote against Elon Musk's substantial CEO compensation package at Tesla's annual meeting on Thursday.

This comes as the latest opposition to the pay package recently valued at USD 44.9 billion, which saw a heftier valuation of about USD 56 billion in January. In May, advisory firms ISS and Glass Lewis also advised against the package. Norges Bank Investment Management, despite acknowledging Musk's leadership value since 2018, expressed concerns over the award's size, performance triggers, dilution, and mitigation of key person risks.

The fund, known as the Government Pension Fund Global, holds a 0.98% stake in Tesla worth USD 7.72 billion and has previously voted against the package in 2018. The fund, designed to secure pensions using proceeds from Norway's oil and gas industry, worth 17.80 trillion Norwegian Krone (USD 1.67 trillion), invests globally to avoid overheating Norway's economy.

Further, the fund plans to endorse shareholder policies contrary to Tesla's management, including proposals on collective bargaining, simple majority vote adoption, board declassification, and harassment and discrimination prevention reporting.

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