OSLO, Norway: Norway’s sovereign wealth fund, a significant Tesla shareholder, announced its intention to oppose Elon Musk’s $56 billion pay package.
While acknowledging Musk’s leadership, the fund expressed concerns about the package’s size, structure, and potential risks. Despite appreciating value generated under Musk’s tenure, the fund remains wary of dilution and the lack of mitigation for key person risk.
Previously, in 2018, the fund voted against a similar package and aims to engage constructively with Tesla on this matter.
Moreover, the fund plans to support a shareholder proposal advocating for Tesla to adopt a freedom of association and collective bargaining policy, aligning with labor unions’ interests. Tesla faces ongoing industrial action in Sweden, highlighting labor disputes.
Norway’s wealth fund has consistently advocated for labor rights, backing similar proposals in 2022. In light of Tesla’s recent setback in Delaware, the fund also favors transferring the company’s state of incorporation to Texas.
Additionally, it intends to vote in favor of electing Musk’s younger brother, Kimbal, to Tesla’s board of directors, as it did in 2018.
These decisions underscore the wealth fund’s stance on executive compensation, labor rights, and corporate governance, reflecting its commitment to responsible investing and long-term shareholder value.
As Tesla shareholders prepare to convene for their annual meeting, these votes signal a broader conversation about governance and accountability within the company.
