Author: Louise Rasmussen and Gwladys Fouche
OSLO (Reuters) – Norway’s $1.7 trillion sovereign wealth fund said on Saturday it would vote against approving Tesla Inc’s (NASDAQ: ) Chief Executive Elon Musk’s $56 billion pay package, which The plan will go to a shareholder vote next week after a Delaware judge invalidated it earlier this year.
The fund is Tesla’s eighth-largest shareholder, according to London Stock Exchange data.
Musk’s pay, the highest paid for a CEO in corporate America, was approved in 2018 but was invalidated earlier this year by a judge who called the amount unfair to shareholders and called it “an unfathomably high amount.” ”.
The fund said it appreciates the “significant value generated under Mr. Musk’s leadership since grant date in 2018.”
“We remain concerned about the overall size of awards, the structure of performance triggers, dilution and the lack of key person risk mitigation,” said fund operator Norges Bank Investment Management (NBIM).
In 2018, the fund voted against the plan.
“We will continue to seek constructive dialogue with Tesla on this and other topics,” NBIM added.
The fund, which holds 0.98% of the shares worth $7.7 billion, according to fund data, has been critical of CEO compensation.
Responding to a post on social media platform
Last year, the committee voted against more than half of U.S. CEO pay packages exceeding $20 million, warning that they were inconsistent with creating long-term value for shareholders.
union
The fund also said it would vote in support of a shareholder proposal calling on Tesla to adopt freedom of association and collective bargaining policies, a victory for unions seeking to exert influence over the U.S. automaker.
The vote comes as Tesla continues to face a strike in Sweden, where its mechanics have been on strike since October 27 in one of the country’s longest labor disputes.
The Norwegian Wealth Fund, which owns 1.5% of global listed stocks, also supported a shareholder proposal in 2022 calling on Tesla to adopt policies that respect labor rights such as freedom of association and collective bargaining.
The electric car maker faces strong opposition from unions and some pension funds in the Nordic region as it refuses to accept Swedish machinists’ demands for collective bargaining rights over wages and other conditions.
Texas
The wealth fund voted to move the electric car maker’s domicile from Delaware to Texas, a vote Musk sought after a Delaware judge invalidated his pay.
The fund also said it would vote to support a proposal to elect Musk’s 51-year-old brother Kimbal to Tesla’s board of directors. The fund voted for his election in 2018, according to fund data.
Tesla shareholders will vote on Musk’s compensation and the re-election of directors, including the Musk brothers, at its annual meeting scheduled for June 13.
