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Norway\u2019s $1.7 trillion sovereign wealth fund said it would vote against the $56 billion pay package for Tesla Inc. Chief Executive Officer Elon Musk, adding to opposition for the carmaker ahead of its annual general meeting next week.<\/p>\n
\u201cWe remain concerned about the total size of the award, the structure given performance triggers, dilution, and lack of mitigation of key person risk,\u201d Norges Bank Investment Management \u2013 the official name of the fund \u2013 said in a\u00a0statement<\/a>\u00a0Saturday.\u00a0<\/p>\n The vote at next week\u2019s AGM will be the second time Musk\u2019s pay package has been put before shareholders. A judge voided an initial vote that approved the package in 2018. Proxy advisers Institutional Shareholder Services and Glass Lewis & Co. have recommended investors reject the proposal.<\/p>\n NBIM also voted against the pay package in 2018, though about three-quarters of investors backed it at the time. A Delaware judge voided the deal earlier this year, saying investors weren\u2019t fully informed of key details.<\/p>\n The decision is \u201cconsistent with our vote on the same award in 2018,\u201d the Norwegian fund said, adding it will \u201ccontinue to seek constructive dialog with Tesla on this and other topics.\u201d\u00a0<\/p>\n The outcome of the shareholder vote is only advisory, though a loss would be a major embarrassment to Tesla\u2019s board and to its top executive. Musk has also threatened to build products outside of Tesla if he can\u2019t increase his equity holdings in the company, something the pay deal would allow him to do.<\/p>\n While NBIM said it would vote in favor of a management proposal to move the company\u2019s corporate home to Texas from Delaware, it plans to back a shareholder proposal calling on Tesla to adopt new policies related to collective bargaining and freedom of association.<\/p>\n The latter proposal, a response to an almost seven-month long strike by Swedish Tesla technicians, is being supported by several of the Nordic region\u2019s biggest asset owners. Tesla has urged shareholders to vote against it, saying \u201cthe company is already committed to protecting its employees\u2019 rights.\u201d<\/p>\n NBIM owned a 0.98%\u00a0holding<\/a>\u00a0worth $7.72 billion in Tesla as of the end of 2023, according to its website. It issues its voting intentions five days before the AGMs of the companies it invests in.\u00a0<\/p>\n<\/div>\nSubscribe to the Eye on AI newsletter to stay abreast of how AI is shaping the future of business. Sign up<\/a> for free.<\/div>\n<\/div>\n