Elon Musk, the CEO of Tesla and SpaceX, is facing opposition from Norway's sovereign wealth fund over his $56 billion pay package. The fund, which holds a 0.98% stake in Tesla worth $7.7 billion and is its eighth-largest shareholder, will vote against the package at Tesla's annual meeting on June 13.
The pay package, approved in 2018 but voided by a Delaware judge earlier this year due to concerns over fairness to shareholders, has raised eyebrows among investors. The fund expressed concerns about the total size of the award, performance triggers, dilution, and lack of mitigation of key person risk.
Norges Bank Investment Management (NBIM), which operates the fund, had previously voted against Musk's pay package in 2018. The fund has been critical of excessive CEO pay and last year voted against more than half of U.S. CEO pay packages above $20 million.
The opposition from Norway's wealth fund comes as Tesla continues to face labor disputes, with mechanics on strike in Sweden since October 2023 over demands for collective bargaining rights covering wages and other conditions.
Tesla shareholders will also vote on the re-election of directors, including Musk's brother Kimbal Musk, at the annual meeting. The fund has previously voted in favor of his election to Tesla's board.
