Norway’s sovereign wealth fund, the largest in the world, announced this Tuesday that it will vote against the billion-dollar remuneration package proposed by the company’s management for its executive chairman (CEO), Elon Musk, who is also one of the main shareholders.
The prize, which could reach around one billion dollars, equivalent to 852 billion euros – triple Portugal’s Gross Domestic Product (GDP) – will be voted against by the Norwegian sovereign wealth fund, according to Reuters.
Remember that investors in the world’s largest electric car manufacturer will decide on November 6 whether to approve Musk’s remuneration package, despite some critics considering it excessive.
Allison Robbert/Reuters
“Too much power” for Elon Musk?
Tesla’s board of directors is, according to Reuters, putting pressure on shareholders to approve the plan, with chairman Robyn Denholm warning that Musk could leave the company, valued at $1.5 trillion, if the deal is rejected. But there are also those, within the company, who consider that the ‘mega’ remuneration package in question gives Musk “too much uncontrolled power”.
Financial market analysts believe that, even with the opposition of the Norwegian sovereign wealth fund, the ‘super prize’ to be awarded to Musk should be approved.
In fact, so far, that sovereign wealth fund – Tesla’s seventh largest shareholder, with a 1.12% stake valued at 17 billion dollars – is the only one to speak out directly against the proposal on the table.
The second largest shareholder, Baron Capital, has already made it known that it plans to support Musk’s compensation package. But Tesla’s largest institutional investors, including BlackRock, Vanguard and State Street, have not yet disclosed their voting direction.