A Delaware judge invalidated Tesla CEO Elon Musk’s $56 billion compensation package earlier this year. Next week, shareholders will have the opportunity to vote on ratifying Musk’s package, which Norway’s $1.7 trillion sovereign wealth fund announced on Saturday it will not support.
LSEG data shows that the fund is Tesla’s eighth-largest shareholder.
Musk’s salary was the highest of any CEO in the United States when it was approved in 2018, but a judge revoked it earlier this year, citing the amount as “unfathomable” and declaring it unfair to shareholders.
However, the fund’s operator, Norges Bank Investment Management (NBIM), stated that “we remain concerned about the total size of the award, the structure given performance triggers, dilution, and lack of mitigation of key person risk.”
The fund had voted against the package in 2018. We’ll keep trying to have a positive conversation with Tesla about this and other things,” NBIM continued.
According to fund data, the fund, which has a $7.7 billion stake worth of 0.98%, has expressed disapproval of CEO pay that is too high.
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