Norway’s sovereign wealth fund, operated by Norges Bank Investment Management, indicated Saturday that it will vote against Tesla CEO Elon Musk’s generous compensation package at the company’s annual meeting on Thursday.
This is the latest denial related to the size of the salary package, which was recently valued by the company at $44.9 billion, but which, in January, was worth about $56 billion. In May, two large shareholder advisory firms, ISS 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 overall magnitude of the award, the structure given the performance criteria, dilution and failure to mitigate a person’s risk.” key,” Norges Bank Investment Management said in a statement posted on its website. “We will continue to seek constructive dialogue with Tesla on this and other matters.”
Tesla asked its shareholders to restore Musk’s package after it was rejected by a Delaware judge this year.
The fund, called the Norwegian Government’s Global Pension Fund, which has a .98% stake in Tesla and is worth $7.72 billion, initially voted against the package in 2018.
The fund invests in profits in the country’s oil and gas industry to ensure pensions for Norway’s future generations. It is worth 17.80 trillion Norwegian krone ($1.67 trillion). Due to its large size, the fund does not reinvest all its money in Norway, as it would overheat the economy. Invests in 72 countries around the world.
The fund also plans to vote on several shareholder policies that management has advised them to vote against, such as the proposal to adopt a non-interference policy that respects freedom of association and collective bargaining, adopt majority voting simple, declassify the board of directors and publish reports on efforts to prevent harassment and discrimination.
