It’s just the latest pushback over the size of Musk’s Tesla Inc. pay package, which was recently valued by the company at $44.9 billion.
Norway’s sovereign wealth fund operated by Norges Bank Investment Management said Saturday it will vote against Elon Musk ’s hefty CEO compensation package during Tesla Inc.’s annual shareholder meeting Thursday at the automaker’s Austin headquarters.
It’s the latest pushback over the size of the pay package, which was recently valued by the company at $44.9 billion but in January had a value of about $56 billion. In May, two big shareholder advisory firms, Institutional Shareholder Services and Glass Lewis, recommended voting against the package. “While we appreciate the significant value generated under Mr. Musk’s leadership since the grant date in 2018, we remain concerned about the total size of the award, the structure given performance triggers, dilution, and lack of mitigation of key person risk,” Norges Bank Investment Management said in a statement on its website. “We will continue to seek constructive dialogue with Tesla on this and other topics.” RELATED: Elon Musk sees second big shareholder advisory firm oppose his multibillion-dollar Tesla pay package Also last month, a group of shareholders including New York City Comptroller Brad Lander, SOC Investment Group and Amalgamated Bank, asked Tesla investors to vote against the package, saying it does not promote Tesla’s long-term growth and stability. The various moves come after the automaker’s board in April asked shareholders to reinstate the CEO compensation plan that was struck down earlier this year by a Delaware judge who called its terms “unfathomable” and unfair to shareholders. The ruling came more than five years after a shareholder lawsuit targeted Musk and directors of the company. They were accused of breaching their duties to the maker of electric vehicles, batteries and solar panels, resulting in a waste of corporate assets and unjust enrichment for Musk. RELATED: Elon Musk can’t keep 'unfathomable' Tesla pay package worth more than $55 billion, judge rules The Norwegian fund, called the Government Pension Fund Global, which has a 0.98% stake in Tesla worth $7.72 billion, voted against the package initially in 2018. The fund invests proceeds from the country’s oil and gas industry to secure pensions for future generations in Norway. It is worth 17.80 trillion Norwegian Krone . Because of its sheer size, the fund does not reinvest all its money in Norway, or it would overheat the economy. It invests in 72 countries worldwide. The fund also plans to vote for several shareholder policies that management has recommended shareholders vote against, including a proposal to adopt a noninterference policy respecting freedom of association and collective bargaining; adopting a simple majority vote; declassifying the board of directors; and publishing reports on harassment and discrimination prevention efforts.
Norges Bank Investment Management Glass Lewis Government Pension Fund Global Amalgamated Bank SOC Investment Group Elon Musk Brad Lander Norwegian Austin New York City Delaware Norwegian Krone
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Norwegian wealth fund to vote against Elon Musk's Tesla pay packageNorway’s sovereign wealth fund managed by Norges Bank Investment Management said Saturday it will vote against Elon Musk’s hefty CEO compensation package during Tesla’s annual meeting on Thursday.
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Norwegian wealth fund to vote against Elon Musk's Tesla pay packageNorway’s sovereign wealth fund managed by Norges Bank Investment Management said Saturday it will vote against Elon Musk’s hefty CEO compensation package during Tesla’s annual meeting on Thursday
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Norwegian wealth fund to vote against Elon Musk's Tesla pay packageNorway’s sovereign wealth fund managed by Norges Bank Investment Management said Saturday it will vote against Elon Musk’s hefty CEO compensation package during Tesla’s annual meeting on Thursday. It’s the latest pushback over the size of the pay package, which was recently valued by the company at $44.
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