Norway wealth fund opposes Musk’s $56 billion pay

The fund, which is Tesla’s eighth-largest shareholder, has concerns about the size and structure of the award, as well as the lack of mitigation for key person risk.

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Norway’s $1.7 trillion sovereign wealth fund announced it will vote against Elon Musk’s $56 billion pay package, which is set for a shareholder vote next week. The decision follows a Delaware judge’s ruling earlier this year that invalidated the pay package, deeming it an ‘unfathomable sum’ and unfair to shareholders. While the fund acknowledged the significant value generated under Musk’s leadership, it expressed concerns about the size of the award, its structure, and potential risks.

The Norwegian fund, Tesla’s eighth-largest shareholder, has a history of opposing excessive CEO pay. Last year, it voted against more than half of US CEO pay packages exceeding $20 million, emphasising the importance of aligning compensation with long-term shareholder value. The fund also supports a proposal for Tesla to adopt a freedom of association and collective bargaining policy amid ongoing labour disputes in Sweden involving Tesla mechanics.

In addition, the fund will vote to transfer Tesla’s state of incorporation from Delaware to Texas following a Delaware judge’s invalidation of Musk’s pay. The fund also backs the re-election of Musk’s younger brother, Kimbal Musk, to Tesla’s board of directors. The shareholders vote on these issues, and Musk’s pay and board re-elections are scheduled for 13 June.