Only 2 days left to protect & help grow the value of your investment in $TSLA by voting FOR ratification of the 2018 CEO Performance Award & FOR redomesticating Tesla in Texas
→ https://t.co/7fIP2UQuNA— Tesla (@Tesla) June 11, 2024
Norway’s sovereign wealth fund plans to vote against Tesla CEO Elon Musk’s $56 billion pay package at the company’s upcoming shareholder meeting. The fund, known as the Government Pension Fund Global (GPFG), manages over $1.3 trillion in assets and is one of the world’s largest investors. It holds a significant stake in Tesla.
Critics argue that Musk’s compensation is too high and not tied to the interests of average shareholders. The pay package, approved in 2018, depends on Tesla meeting certain financial and operational goals. “The magnitude of Musk’s compensation is staggering.
With the upcoming Tesla shareholder vote, Ben Kallo, Senior Research Analyst at Baird, was quoted in the @nytimes on the impact the decision could have on the company. https://t.co/iHLpE5hEdn
— Baird (@rwbaird) June 11, 2024
California pension fund opposes 'ridiculous' Elon Musk pay package at Tesla https://t.co/vTHXgy4VQJ
— David Lazarus (@Davidlaz) June 10, 2024
Wealth fund opposes Musk’s payout
We don’t see it as being proportionate or effectively tied to long-term performance,” said a spokesperson from the wealth fund. Tesla has defended the package, saying it ensures Musk stays focused on achieving ambitious goals that benefit shareholders in the long run.
"Elon Musk has leaked some of the results from Tesla’s shareholders vote as a messy week begins for the shareholders of the electric car company. Tesla is holding its annual shareholder meeting on Thursday, June 13." https://t.co/T9YZmQBxGF
— Amber Mac (@ambermac) June 11, 2024
For Musk to fully vest in the stock options, he must grow Tesla’s market value to $650 billion by 2028. Norway’s wealth fund is adding to the growing scrutiny of Musk’s compensation. It draws more attention to the responsibilities of boards in designing executive pay packages.
Investors will have a chance to weigh in on the matter at the shareholder meeting later this month.
Johannah Lopez is a versatile professional who seamlessly navigates two worlds. By day, she excels as a SaaS freelance writer, crafting informative and persuasive content for tech companies. By night, she showcases her vibrant personality and customer service skills as a part-time bartender. Johannah's ability to blend her writing expertise with her social finesse makes her a well-rounded and engaging storyteller in any setting.
