OSLO (Reuters) -Norway’s sovereign wealth fund, the world’s largest, said on Tuesday it would vote against ratifying Tesla CEO Elon Musk’s proposed compensation package, containing shares worth up to $1 trillion, at an annual general meeting this week.
Investors in the electric-vehicle maker will decide on November 6 whether to approve the package, likely the largest-ever CEO compensation agreement, which critics have called excessive.
Tesla’s board is pushing for shareholders to approve the plan, with Chair Robyn Denholm warning last week that Musk could leave the company if the deal is rejected.
While the package could grant stock worth up to $1 trillion over 10 years, the cost of those shares at the time of the award will be deducted, making the value to Musk slightly lower, at up to $878 billion, according to a Reuters analysis.
“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,” Norges Bank Investment Management said on its website.
(Reporting by Terje Solsvik; Editing by Joe Bavier)
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