Norges Bank Investment Management, a sovereign wealth fund based in Norway, said on Saturday that it will abstain from voting on Elon Musk’s CEO compensation package during Tesla’s annual meeting on Thursday.
This is the most recent blow to the compensation plan, which the corporation valued at $44.9 billion in January and $56 billion in January of this year.
Voting against the package was advised in May by two significant shareholder advice companies, ISS and Glass Lewis.
The fund invests revenues from Norwegian gas and oil to pay future pensions. Norway spends 17.80 trillion Norwegian Kronere ($1.67 trillion) in 72 nations in an attempt to cool its economy.
Newsng understands the fund will vote against management’s positions on several shareholder initiatives. A simple majority vote, declassifying the board of directors, a noninterference policy that supports collective bargaining and freedom of association, and reporting on harassment and discrimination prevention are a few of them.
Musk received the highest salary of any CEO in the United States when it was granted in 2018, but a court revoked it earlier this year, citing the figure as “unfathomable” and declaring it to be unjust to shareholders.
“While we appreciate the significant value generated under Mr Musk’s leadership since the grant date in 2018, we remain concerned about the total size of the award, the structure given performance triggers, dilution, and lack of mitigation of key person risk,” NBIM said in a statement on its website.
“We will continue to seek constructive dialogue with Tesla on this and other topics.”
According to fund statistics, the fund, which has a 0.98 per cent investment valued at US$7.7 billion, has expressed disapproval of CEO compensation that is too high.
In response to a remark on the social networking site X, Musk stated that the fund’s choice is “not cool” and that “overwhelming support in favour” would be found if the fund conducted a constituent survey.
Shortly after lowering pricing in the US, Tesla, the leading manufacturer of Electric Vehicles (EVs), has announced steep price reductions in China and Germany as it deals with diminishing sales and escalating competition in key countries.
