Norway’s sovereign wealth fund, one of Tesla’s biggest investors, said Tuesday that it will vote against a proposed compensation package that could pay CEO Elon Musk as much as over a decade.
There will be more than a dozen company proposals up for a vote Thursday during Tesla’s annual meeting, but none have generated more division than Musk’s potentially massive pay package.
鈥淲hile we appreciate the significant value created under Mr. Musk鈥檚 visionary role, we are concerned about the total size of the award, dilution, and lack of mitigation of key person risk consistent with our views on executive compensation,鈥� said Norges Bank Investment Management, which manages the country鈥檚 Government Pension Fund Global. 鈥淲e will continue to seek constructive dialogue with Tesla on this and other topics.鈥�
The fund has a 1.16% stake, the sixth largest holding among institutional investors.
Baron Capital Management, which holds about 0.4% of Tesla’s outstanding shares said Monday that it will vote in favor of the compensation package.
鈥淓lon is the ultimate 鈥渒ey man鈥� of key man risk. Without his relentless drive and uncompromising standards, there would be no Tesla,鈥� wrote founder Ron Baron. 鈥淗e has built one of the most important companies in the world. He鈥檚 redefining transportation, energy and humanoid robotics and creating lasting value for shareholders while doing it. His interests are completely aligned with investors.鈥�
Musk is the company’s , holding 15.79% of all outstanding shares.
Tesla management has proposed a compensation arrangement that would hand Musk shares worth as much as 12% of the company in a dozen separate packages if the company meets ambitious performance targets, including massive increases in car production, share price and operating profit.
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