Norway's largest sovereign wealth funds, Central Bank asset management (NBIM), said it would vote against a plan for Tesla to grant a massive compensation package worth $1 trillion (about 1,430 trillion won) to Chief Executive Officer Elon Musk.
The Norwegian sovereign wealth funds stated accordingly on the 4th (local time). The Norwegian sovereign wealth funds said it recognizes the value Musk has created but expressed concern about granting a reward of an unprecedented scale.
Tesla will hold its annual shareholders meeting on the 6th and put the compensation plan to a vote. The Norwegian sovereign wealth funds is the largest shareholder among investors who have so far disclosed their voting intention on the agenda. The Norwegian sovereign wealth funds holds about 1.1% equity in Tesla.
Among institutional investors, Vanguard (7.8%), BlackRock (6.2%), and State Street (3.5%), which have the highest equity stakes in Tesla, have not yet disclosed their voting plans.
Earlier, the world's two major proxy advisory firms, ISS and Glass Lewis, also recommended that shareholders vote against the $1 trillion compensation package for Musk, saying it would dilute shareholder value.
However, Tesla's board is urging approval, saying that if the compensation plan for Musk does not pass at the shareholders meeting, he could leave the company.