Norway’s sovereign wealth fund has voted towards a Tesla proposal to present CEO Elon Musk a compensation package deal price $1 trillion.
The fund, which is managed by Norges Financial institution Funding Administration, holds a 1.14% stake in Tesla valued at about $11.7 billion, in keeping with its mid-year filings in June.
“Whereas we admire the numerous worth created underneath Mr. Musk’s visionary position, we’re involved concerning the whole measurement of the award, dilution, and lack of mitigation of key particular person danger — in step with our views on govt compensation,” the fund mentioned in an announcement posted on its web site. “We are going to proceed to hunt constructive dialogue with Tesla on this and different subjects.”
NBIM’s rejection might not be sufficient to defeat the proposal. However it’s the newest hurdle in Tesla’s prolonged marketing campaign to sway shareholders to present Musk the biggest company efficiency pay package deal in historical past. Advisory teams like ISS and Glass Lewis have additionally beneficial voting towards the pay package deal.
Musk has argued the compensation package deal isn’t as a lot concerning the cash as it’s about management. The CEO just lately made that time throughout the firm’s third-quarter earnings name and has threatened to depart Tesla if the package deal isn’t authorised.
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