Major Tesla Shareholder to Vote Against Musk's $1.5 Trillion Pay Deal
Norway's sovereign wealth fund has announced it will vote against ratifying Tesla CEO Elon Musk's proposed compensation package, which could be worth up to $1.54 trillion.
Details of the Proposed Compensation
The package is considered one of the largest CEO pay deals ever, potentially reaching $US1 trillion. Tesla shareholders will vote on the proposal at the annual general meeting scheduled for November 6.
Opposition and Support
- The sovereign wealth fund, the world's largest, holds the seventh-largest stake in Tesla and is the biggest shareholder to publicly declare opposition.
- Critics describe the pay deal as excessive, fearing it grants Musk too much unchecked power.
- Tesla's board, led by chair Robyn Denholm, advocates for approval, warning that Musk could leave the company if the deal is rejected.
"Investors in the electric vehicle maker will decide on November 6 whether to approve the package, likely the largest-ever chief executive compensation agreement."
"Opponents worry that it will give the world's richest man too much unchecked power."
The vote represents a significant moment as shareholders weigh the future leadership stability at Tesla, a company valued at $1.5 trillion.
Author’s summary: Norway’s sovereign wealth fund opposes Elon Musk’s historic $1.5 trillion Tesla pay package, raising concerns over executive power and company leadership stability.