According to media reports, Norway's sovereign wealth fund, valued at $1.7 trillion, announced on June 8 that it will vote against approving Tesla CEO Elon Musk's $56 billion compensation plan.
Data from the London Stock Exchange Group (LSEG) indicates that Norway's sovereign wealth fund is Tesla's eighth-largest shareholder. The fund's data shows that it holds 0.98% of Tesla's shares, valued at $7.7 billion.
Musk's compensation, the highest for a CEO in the U.S. corporate world, was approved in 2018 but was declared invalid earlier this year by a judge. The judge stated that the amount was unfair to shareholders and described the figure as "incomprehensible."
The Norway sovereign wealth fund acknowledged the "tremendous value Tesla has generated under Mr. Musk's leadership since the 2018 compensation plan was granted." However, Norges Bank Investment Management (NBIM), which operates the fund, stated, "Nevertheless, we remain concerned about the overall size of the pay package, the structure of the performance triggers, the dilution of equity, and the lack of mitigation of key person risk."
In 2018, the fund had also voted against the plan. NBIM added, "We will continue to seek constructive dialogue with Tesla on this issue and other matters."
Musk responded on the social media platform X, saying that the fund's decision "is not 'cool'" and added that if the fund had genuinely investigated the voters, they would find that "the pay package was overwhelmingly supported."
The fund also stated that it would vote in favor of a shareholder proposal calling for Tesla to adopt policies on freedom of association and collective bargaining, which would be a positive development for unions seeking to influence Tesla.
This vote comes as Tesla continues to face strikes in Sweden, with its technicians on strike since October 27 last year, making it one of Sweden's longest-running labor disputes.
Tesla faces opposition from unions and some pension funds in the Nordic region due to its refusal to accept the collective bargaining rights demands of Swedish technicians regarding wages and other conditions.
Previously, the Norway sovereign wealth fund voted in favor of Tesla's move to relocate its registration from Delaware to Texas. After a Delaware judge invalidated Musk's pay package, Tesla organized this vote.
The fund also stated that it would vote in favor of the proposal to elect Musk's 51-year-old brother Kimbal to Tesla's board of directors. The fund had also supported Kimbal's election in 2018.
Tesla shareholders will vote on Musk's compensation and the re-election of directors, including the Musk brothers, at the annual meeting scheduled for June 13.
