A $1 trillion pay package for a single executive has been labeled “concerning” by one of the world’s most powerful investors. Norway’s sovereign wealth fund will vote against the unprecedented award for Elon Musk.
The fund, which is the world’s largest and holds a $17 billion stake in Tesla, acknowledged Musk’s “visionary role.” However, it could not look past the “total size of the award,” which would make Musk the world’f first trillionaire.
This is the second time the fund has drawn a line. It also voted against Musk’s $56 billion package last year, a deal that was later invalidated by a Delaware court.
In its statement, the fund also cited “dilution” of other shareholders and the “lack of mitigation of key person risk” as part of its “consistent” view on executive pay.
Tesla’s board is defending the $1 trillion figure as essential for retention, but it now faces opposition from its seventh-largest shareholder, two major advisory firms, and several large US pension funds.
