A past spat between Elon Musk and the CEO of Norway’s wealth fund is looming over the upcoming vote on his $1 trillion pay package. The fund, a $17 billion investor, has once again decided to vote “no.”
This repeats a scenario from last year. After the fund opposed Musk’s $56 billion deal, its CEO, Nicolai Tangen, invited Musk to dinner. Musk’s texted reply was icy: “When I ask you for a favour… and you decline, then you should not ask me for one… Friends are as friends do.”
The fund is holding its ground, stating its “no” vote on the new $1 trillion deal is “consistent with our views on executive compensation.” It cited the “total size” and “key person risk” as major concerns.
The Tesla board is fighting hard for a “yes” vote, warning that Musk’s retention is at stake. If the deal passes and targets are met, Musk’s stake would grow to over 25%, making him the world’s first trillionaire.
With advisory firms Glass Lewis and ISS also recommending rejection, the personal and financial stakes couldn’t be higher for Thursday’s annual meeting.