Norwegian sovereign wealth fund Norges Bank Investment Management declared Saturday it will vote against Elon Musk's CEO salary package at Tesla's annual meeting on Thursday.
There is a growing opposition to Elon Musk's $44.9 billion pay package, which was valued approximately $56 billion in January, per reports. Last month, key shareholders ISS and Glass Lewis suggested a rejection of the pay package.
Norges Bank Investment Management stated on its website that it appreciates Elon Musk's leadership but remains concerned about the size of the package, including "the structure given performance triggers, dilution, and lack of mitigation of key person risk," according to ABC News.
Tesla has requested shareholders reinstate Musk's compensation package after a Delaware judge rejected it this year. The Government Pension Fund Global, which owns 0.98% of Tesla worth $7.72 billion, initially opposed the deal in 2018.
The fund invests Norwegian oil and gas earnings for future pensions. To cool Norway's economy, it invests in 72 countries for 17.80 trillion Norwegian Krone ($1.67 trillion).
The fund will vote for many shareholder policies that management opposes. Among them are a noninterference policy supporting freedom of association and collective bargaining, a simple majority vote, declassifying the board of directors, and harassment and discrimination prevention reports.
Elon Musk to Resign If Pay Package Gets Denied
Meanwhile, Tesla chair Robyn Denholm has warned that Elon Musk may resign if shareholders reject his massive pay package Denholm wrote to investors that Musk had "other places" to focus.
Denholm said next week's decision on Musk's pay is "obviously not about the money," as he will remain one of the world's wealthiest, as reported by The Guardian.
The Tesla official suggested Musk might leave Tesla if the June 13 vote goes against him. The board sought certification again after a judge nullified Musk's $56 billion compensation contract in January. Investors first approved it in 2018.
Elon Musk owns around 13% of Tesla, but the shareholder statement before the AGM states that his holding will not count toward the vote, which must be a majority of Tesla shares "not owned, directly or indirectly, by Mr. Musk" or his brother Kimbal.
Wedbush Securities analyst Dan Ives believes Elon Musk is "not going anywhere" but may step down as Tesla CEO if the vote fails. "Musk is not going anywhere, but if the comp package is denied, he will potentially shed his CEO title and become less involved in Tesla over time," he added.
In another Tesla update, Elon Musk, the CEO of Tesla, announced on X on Saturday that the Model Y will not receive an upgrade this year, per Reuters.
Musk said, "No Model Y'refresh' is coming out this year," underscoring Tesla's ongoing improvements. Tesla has been sluggish to upgrade its older models due to high borrowing rates that deter pricey purchases. In China, the world's largest car market, competitors offer cheaper models.
The EV maker's global vehicle deliveries fell for the first time in four years in the first quarter.
