Norwegian wealth fund to vote against Elon Musk’s Tesla pay kit

Norway’s sovereign wealth fund operated by Norges Financial institution Investment Administration acknowledged Saturday it’ll vote against Elon Musk’s hefty CEO compensation kit at some stage in Tesla’s annual meeting on Thursday.

It’s the newest pushback over the scale of the pay kit, which was currently valued by the company at $44.9 billion, nonetheless in January had a price of about $56 billion. In May perhaps presumably, two big shareholder advisory firms, ISS and Glass Lewis, steered balloting against the kit.

“Whereas we enjoy the a few price generated below Mr. Musk’s leadership for the reason that grant date in 2018, we dwell serious regarding the full measurement of the award, the structure given performance triggers, dilution, and shortage of mitigation of key person possibility,” Norges Financial institution Investment Administration acknowledged in a press release on its internet predicament. “We are in a position to continue to idea constructive dialogue with Tesla on this and other issues.”

Tesla requested shareholders to revive Musk’s pay kit after it was rejected by a Delaware resolve this 300 and sixty five days.

The fund, called the Authorities Pension Fund Global, which has a .98% stake in Tesla price $7.72 billion, voted against the kit on the starting up in 2018.

The fund invests proceeds from the nation’s oil and fuel exchange to salvage pensions for future generations in Norway. It’s price 17.80 trillion Norwegian Krone ($1.67 trillion). On myth of its sheer measurement, the fund does no longer reinvest all its money in Norway, or it would overheat the financial system. It invests in 72 countries worldwide.

The fund furthermore plans to vote for so a lot of shareholder insurance policies that management has steered shareholders vote against, at the side of a proposal to adopt a noninterference policy respecting freedom of affiliation and collective bargaining; adopting a truly easy majority vote; declassifying the board of directors; and publishing reviews on harassment and discrimination prevention efforts.