Norwegian wealth fund to vote against Elon Musk's Tesla pay package
What specific concerns does Norges Bank Investment Management have regarding Elon Musk's compensation package?
Norges Bank Investment Management has expressed several concerns regarding Elon Musk's compensation package. Firstly, they are concerned about the total size of the award, which was recently valued at $44.9 billion. Secondly, they have concerns about the structure of the package given the performance triggers. Additionally, they are worried about the dilution and lack of mitigation of key person risk. Despite appreciating the significant value generated under Musk's leadership since the grant date in 2018, the investment management firm maintains its concerns and will continue to seek constructive dialogue with Tesla on this and other topics.
What is the stake percentage and the monetary value of the Government Pension Fund Global's investment in Tesla?
The Government Pension Fund Global, Norway's sovereign wealth fund, holds a 0.98% stake in Tesla. The monetary value of this investment is approximately $7.72 billion.
Why did Norges Bank Investment Management decide to vote against Elon Musk’s compensation package both in 2018 and at the upcoming annual meeting?
Norges Bank Investment Management, the arm of Norway’s central bank that manages the country’s $1.6 trillion oil fund, decided to vote against Elon Musk's compensation package both in 2018 and at the upcoming annual meeting due to concerns about the total size of the award, the structure given performance triggers, dilution, and lack of mitigation of key person risk6. The fund initially voted against the package in 2018 and continues to express concerns over its size and structure.