Norway's sovereign wealth fund, managed by Norges Bank Investment Management, has announced its decision to vote against Elon Musk's substantial CEO compensation package during Tesla's upcoming annual meeting. This move comes in response to concerns over the size and structure of the package, which was valued at $44.9 billion by the company, down from $56 billion in January. The fund expressed reservations about the award's total size, performance triggers, dilution, and the lack of mitigation of key person risk.
In a statement on its website, Norges Bank Investment Management acknowledged the value generated under Musk's leadership but emphasized the need for constructive dialogue with Tesla on this and other topics. The fund, known as the Government Pension Fund Global, holds a .98% stake in Tesla valued at $7.72 billion and initially voted against the package in 2018.
The Government Pension Fund Global, with assets worth 17.80 trillion Norwegian Krone ($1.67 trillion), invests proceeds from Norway's oil and gas industry to secure pensions for future generations. Due to its substantial size, the fund diversifies its investments globally across 72 countries to prevent overheating the domestic economy.
Additionally, the fund intends to support several shareholder policies that management has recommended voting against. These include adopting a noninterference policy respecting freedom of association and collective bargaining, implementing a simple majority vote, declassifying the board of directors, and publishing reports on harassment and discrimination prevention efforts.
