History is repeating itself as Norway’s sovereign wealth fund votes “no” on a massive Elon Musk pay package… again.
After opposing his $56 billion deal last year, the fund has now confirmed it will vote against the new, even larger $1 trillion proposal. The $56 billion package was approved by shareholders but later invalidated by a Delaware court, setting the stage for this sequel.
The fund, which holds a $17 billion stake, said its “no” vote is “consistent with our views on executive compensation.” It cited the “total size” and “key person risk” as primary concerns.
This “consistent” stance led to personal friction last year. After the “no” vote, Musk declined a dinner invite from the fund’s CEO, Nicolai Tangen, reportedly texting, “Friends are as friends do.”
Despite the past, the Tesla board is again pushing for approval, arguing it’s essential for retention. But with advisory firms ISS and Glass Lewis also recommending rejection, this second round is proving just as contentious.