The Norwegian Oil Fund will vote against a new pay package for Tesla CEO Elon Musk. The fund told Reuters. The fund is the seventh-largest owner of Tesla shares with a 1.12 percent stake worth $17 billion. That's equivalent to 110 billion Danish kroner.
According to NRK, the oil fund voted against Musk's pay packages in both 2018 and 2024. According to the Norwegian news agency NTB, the fund usually votes against similar and very large pay packages for top executives in companies.
- Although we appreciate Musk's visionary role, we are concerned about the overall size of this award, dilution and the lack of risk reduction around key people, which is in line with our position on executive pay, the oil fund wrote in a statement according to NTB.
Tesla shareholders can vote on the proposed pay package for Musk at the general meeting in two days. The pay package includes shares with a potential value over ten years of up to 6,500 billion kroner.
Tesla's chairman, Robyn Denholm, warned last week that Musk could leave the company if the package is not approved, according to NTB. The company also points out that Musk's gain depends on whether he achieves some specific goals set for the company. This includes expanding the focus on self-driving taxis and increasing the company's value.
The Norwegian Oil Fund is the world's largest investment fund. At the end of 2024, it was worth 20,000 billion - Norwegian kroner. In Danish kroner, this corresponds to around 12,540 billion. The fund owns almost 1.5 percent of all listed shares worldwide.
Norway established the state oil fund in 1996 to have a form of savings for bad times. Since then, the value has grown to almost four times Norway's GDP.
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