"Norway's sovereign wealth fund has said it will vote against a $1tn (765bn) pay package for the Tesla chief executive, Elon Musk. The fund, which is the biggest national wealth fund in the world, said that while it appreciated the the significant value created under Mr Musk's visionary role it would vote against his performance award. 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, it said."
"On Thursday, investors will vote on proposals for an unprecedented incentive package that could make Elon Musk the world's first trillionaire. If Musk increases the value of Tesla from about $1tn to $8.5tn over the next 10 years, Musk will receive new shares that would push his stake in the company from nearly 16% to more than 25%. This would increase the fortunes of the world's richest man to more than $2tn."
Norway's sovereign wealth fund will vote against a $1tn pay package for Tesla chief executive Elon Musk, citing the award's large size, shareholder dilution, and inadequate mitigation of key-person risk. The fund holds a $17bn stake and is Tesla's seventh-largest single shareholder. The vote occurs ahead of Tesla's annual meeting where investors will consider a plan that could boost Musk's ownership from nearly 16% to over 25% if Tesla's value grows to $8.5tn, potentially making Musk a multi-trillionaire. Tesla's chair argues the incentive is necessary to retain Musk and protect company value.
Read at www.theguardian.com
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