California pension funds, including CalSTRS and Norwegian sovereign wealth fund, oppose Elon Musk's $50 billion Tesla pay package
CalSTRS CIO Chris Ailman calls deal 'ridiculous'
Investors raise concerns over size and potential dilution effects of pay package
ISS and Glass Lewis recommend investors reject proposal
Norwegian fund voted against Musk's pay package in 2018 due to key person risk and dilution
California pension funds, including the California State Teachers' Retirement System (CalSTRS) and Norway's sovereign wealth fund, have expressed opposition to Elon Musk's proposed pay package at Tesla. The pay package, which consists of performance-based stock options worth roughly $50 billion, has raised concerns among investors due to its size and potential dilution effects. CalSTRS Chief Investment Officer Chris Ailman has publicly criticized the deal as 'ridiculous' and stated that the fund does not plan to sell its Tesla shares but believes the valuation for the stock is too high. The Norwegian fund also voted against Musk's pay package in 2018, citing concerns over key person risk and dilution. In addition to these objections, two major shareholder advisory firms, Institutional Shareholder Services (ISS) and Glass Lewis & Co., have recommended investors reject the proposal. Despite this opposition, Tesla's board has asked shareholders to restore Musk's pay package after it was rejected by a Delaware judge earlier this year.
California State Teachers' Retirement System Chief Investment Officer Chris Ailman told CNBC he is voting against Elon Musk’s revised pay package at Tesla.
CalSTRS held just under 4.7 million shares of Tesla as of June 30, 2023.
Chris Ailman believes the valuation for Tesla stock is too high and thinks Musk should focus on specific projects like cars, X, or going to Mars but leave day-to-day operations to professional managers.
Accuracy
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The author makes an appeal to emotion with the phrase 'ridiculous' when describing Musk's pay package. This is a form of informal fallacy known as an emotional appeal.
We'll pay him 140-times the average worker pay. How about that deal? I think that's more than fair. This pay package is ridiculous.
Norway's sovereign wealth fund, Norges Bank Investment Management (NBIM), announced it will vote against Elon Musk’s $56 billion pay package at Tesla’s upcoming annual general meeting.
The fund expressed concerns over the total size of the award, performance triggers, dilution, and lack of mitigation of key person risk.
A Delaware judge voided the initial vote on the pay package earlier this year due to insufficient information provided to investors.
Accuracy
California State Teachers’ Retirement System Chief Investment Officer Chris Ailman told CNBC he is voting against Elon Musk’s revised pay package at Tesla.
Deception
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The article contains a dichotomous depiction and an appeal to authority. It presents the opposition to Elon Musk's pay package as a given without providing any arguments for why it is too large or has other issues. Additionally, the fact that Norges Bank Investment Management (NBIM) is against the pay package is presented as a significant point without any explanation of why their opinion should be trusted more than others. The author also reports on NBIM's stance towards Tesla's corporate relocation and its support for a shareholder proposal, but does not critically evaluate these positions.
. . . the total size of the award, the structure given performance triggers, dilution, and lack of mitigation of key person risk.
NBIM owned a 0.98% holding worth $7.72 billion in Tesla as of the end of 2023.
The latter proposal . . . is being supported by several of the Nordic region’s biggest asset owners.
California State Teachers' Retirement System Chief Investment Officer Chris Ailman believes the valuation for Tesla stock is too high and thinks Musk should focus on specific projects like cars, X, or going to Mars but leave day-to-day operations to professional managers.
Norway’s sovereign wealth fund, operated by Norges Bank Investment Management, will vote against Elon Musk’s CEO compensation package during Tesla’s annual meeting on Thursday.
The fund expressed concerns about the total size of the award, its structure with performance triggers, dilution, and lack of mitigation of key person risk.
Norges Bank Invested Management owns a .98% stake in Tesla worth $7.72 billion.
Accuracy
Norway's sovereign wealth fund will vote against Elon Musk’s CEO compensation package during Tesla’s annual meeting on Thursday.
Norges Bank Investment Management owns a .98% stake in Tesla worth $7.72 billion.
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(85%)
The article contains an appeal to authority fallacy. The author cites the opinions of Norges Bank Investment Management and two shareholder advisory firms, ISS and Glass Lewis, as reasons to question Elon Musk's compensation package. This is a form of argumentum ad verecundiam fallacy.
It's the latest pushback over the size of the pay package...
In May, two big shareholder advisory firms, ISS and Glass Lewis, recommended voting against the package.
While we appreciate the significant value generated under Mr. Musk's leadership since the grant date in 2018, we remain concerned about the total size of the award...
