""While we appreciate the significant value created under Mr. Musk's visionary role, we are concerned about the total size of the award, dilution, and lack of mitigation of key person risk consistent with our views on executive compensation," said Norges Bank Investment Management, which manages the country's Government Pension Fund Global. "We will continue to seek constructive dialogue with Tesla on this and other topics." The fund has a 1.16% stake, the sixth largest holding among institutional investors."
""Elon is the ultimate 'key man' of key man risk. Without his relentless drive and uncompromising standards, there would be no Tesla," wrote founder Ron Baron. "He has built one of the most important companies in the world. He's redefining transportation, energy, and humanoid robotics and creating lasting value for shareholders while doing it. His interests are completely aligned with investors.""
"Tesla management has proposed a compensation arrangement that would hand Musk shares worth as much as 12% of the company in a dozen separate packages if the company meets ambitious performance targets, including massive increases in car production, share price, and operating profit."
Norges Bank Investment Management will vote against the proposed Tesla CEO compensation package that could pay Elon Musk up to $1 trillion. The fund cited concerns about the award's total size, dilution, and insufficient mitigation of key-person risk under its executive-compensation principles. The fund holds a 1.16% stake, ranking sixth among institutional investors. Baron Capital Management, with about 0.4% of shares, plans to vote in favor, calling Musk the 'ultimate key man' whose drive created Tesla and aligned his interests with investors. Musk owns 15.79% of shares, and the proposal would grant him up to 12% more in performance-based tranches tied to production, share-price, and operating-profit targets.
Read at Fast Company
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