Writer: Louise Rasmussen and Gwladys Fouche
OSLO (Reuters) – Norway’s $1.7 trillion sovereign wealth fund stated on Saturday it might vote in opposition to approving Tesla Inc’s (NASDAQ: ) Chief Govt Elon Musk’s $56 billion pay package deal, which The plan will go to a shareholder vote subsequent week after a Delaware decide invalidated it earlier this yr.
The fund is Tesla’s eighth-largest shareholder, in response to London Inventory Trade information.
Musk’s pay, the very best paid for a CEO in company America, was permitted in 2018 however was invalidated earlier this yr by a decide who known as the quantity unfair to shareholders and known as it “an unfathomably excessive quantity.” ”.
The fund stated it appreciates the “vital worth generated beneath Mr. Musk’s management since grant date in 2018.”
“We stay involved in regards to the total dimension of awards, the construction of efficiency triggers, dilution and the shortage of key particular person danger mitigation,” stated fund operator Norges Financial institution Funding Administration (NBIM).
In 2018, the fund voted in opposition to the plan.
“We are going to proceed to hunt constructive dialogue with Tesla on this and different subjects,” NBIM added.
The fund, which holds 0.98% of the shares value $7.7 billion, in response to fund information, has been important of CEO pay.
Final yr, the committee voted in opposition to greater than half of U.S. CEO pay packages exceeding $20 million, warning that they had been inconsistent with creating long-term worth for shareholders.
union
The fund additionally stated it might vote in help of a shareholder proposal calling on Tesla to undertake freedom of affiliation and collective bargaining insurance policies, a victory for unions searching for to exert affect over the U.S. automaker.
The vote comes as Tesla continues to face a strike in Sweden, the place its mechanics have been on strike since October 27 in one of many nation’s longest labor disputes.
The Norwegian Wealth Fund, which owns 1.5% of world listed shares, additionally supported a shareholder proposal in 2022 calling on Tesla to undertake insurance policies that respect labor rights resembling freedom of affiliation and collective bargaining.
The electrical automobile maker faces sturdy opposition from unions and a few pension funds within the Nordic area because it refuses to simply accept Swedish machinists’ calls for for collective bargaining rights over wages and different situations.
Texas
The wealth fund voted to maneuver the electrical automobile maker’s domicile from Delaware to Texas, a vote Musk wanted a Delaware decide invalidated his pay.
The fund additionally stated it might vote to help a proposal to elect Musk’s 51-year-old brother Kimbal to Tesla’s board of administrators. The fund voted for his election in 2018, in response to fund information.
Tesla shareholders will vote on Musk’s compensation and the re-election of administrators, together with the Musk brothers, at its annual assembly scheduled for June 13.
