While Tesla sales have plummeted due to the direct actions of the egotistical blowhard known as Elon Musk; Shareholders will be deciding if he deserves the trillion dollar pay out he is seeking in a vote this week.
Norway’s sovereign wealth fund, the world’s largest, said on Tuesday it would vote against ratifying Tesla (TSLA.O)
CEO Elon Musk’s proposed compensation package that is potentially worth $1 trillion at an annual general meeting later this week.
Investors in the electric-vehicle maker will decide on November 6 whether to approve the package, likely the largest-ever CEO compensation agreement. Critics have called the pay deal excessive but face an uphill fight to block it.
Tesla’s board is pushing for shareholders to approve the plan, with Chair Robyn Denholm warning that Musk could leave the $1.5 trillion market cap firm if the deal is rejected. Opponents worry that it will give Musk too much unchecked power.
BLOCKING MUSK’S HUGE PAY PACKAGE WON’T BE EASY
Musk’s new trillion-dollar pay package will almost certainly pass, given broad investor support. Laws in Texas, where Tesla moved its headquarters last year, also allow Musk to vote his own large stake, giving him some 13.5% of voting power.
The Norwegian wealth fund is the largest investor so far to say how it plans to vote. The next-largest to do so, Baron Capital, plans to back Musk’s pay package. Tesla’s largest institutional investors, including BlackRock, Vanguard and State Street, have yet to disclose their voting plans.