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Norway wealth fund opposes Musk’s $56 billion package

Norway wealth fund opposes Musk’s $56 billion package

Wealth Opposes Package

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.

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.

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.

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Investors will have a chance to weigh in on the matter at the shareholder meeting later this month.

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