Norway’s government pension fund managed by Norges Bank Investment Management announced it will oppose Elon Musk’s substantial CEO pay plan during Tesla’s yearly meeting on Thursday.
This is the latest objection regarding the size of the compensation, valued by Tesla at $44.9 billion recently, down from about $56 billion in January. In May, ISS and Glass Lewis, two major advisory firms for shareholders, advised against approving the plan.
“We recognize the significant value created under Mr. Musk’s leadership since 2018, but we have concerns about the overall size of the award, its structure based on performance triggers, share dilution, and the lack of measures to reduce risks linked to one person,” said Norges Bank Investment Management in a statement on its website. “
Elon Musk appears at an event (Via Randy Simmon/Shutterstock)
We aim to engage in constructive discussions with Tesla on this issue and others.” Tesla requested shareholders to reinstate Musk’s pay plan after a Delaware judge rejected it earlier this year.
The fund, known as the Government Pension Fund Global, holds a .98% stake in Tesla worth $7.72 billion and had initially voted against the plan in 2018.
