Major Tesla Shareholder to Vote Against Musk’s $1.5 Trillion Pay Deal
Norway's sovereign wealth fund announced its intention to vote against the proposed compensation package for Tesla CEO Elon Musk, which could be worth up to $1.54 trillion USD. The fund, the world's largest sovereign wealth fund, holds the seventh-largest stake in Tesla and is the biggest shareholder to declare its voting stance so far.
Details of the Pay Deal
The deal, set to be voted on during Tesla's annual general meeting on November 6, is considered potentially the largest executive compensation package ever proposed. Despite the unprecedented size, critics argue the package is excessive.
Shareholder Perspectives
- Opponents face a challenging battle to block the package.
- Tesla's board supports the deal strongly, urging shareholders to approve it.
- Chair Robyn Denholm cautioned that Elon Musk might leave the company if the compensation plan is rejected.
- Concerns among opponents include the concentration of power this deal could grant to the world's richest individual.
“Mr. Musk could leave the $1.5 trillion market cap firm if the deal is rejected.” – Robyn Denholm, Chair of Tesla's Board
Investors will decide on the fate of this historic compensation package in the upcoming vote.
Author's Summary
This landmark Tesla compensation deal faces opposition from Norway's major shareholder, highlighting risks tied to granting Elon Musk immense influence over the company's future.