On the 13th local time, Tesla in the United States will hold its annual shareholder meeting. One of the important events is to vote on CEO Elon Musk’s remuneration plan of up to US$56 billion.. According to CNBC, Norway’s sovereign wealth fund said on the 8th local time that it would vote against this remuneration plan at the shareholders’ meeting.
reported that public information shows that as the world’s largest sovereign wealth fund, the Norwegian Sovereign Wealth Fund is the eighth largest shareholder of Tesla, holding approximately 0.98% of Tesla’s shares. The fund stated that it appreciates the significant value Tesla has created under Musk's leadership since the compensation plan was approved in 2018, but it still has concerns about the total scale of compensation, performance structure, etc. The fund also said it would vote to support Elon Musk's 51-year-old brother Kimbal Musk's proposal to join Tesla's board of directors at this year's shareholder meeting.
In 2018, Tesla’s board of directors approved a long-term compensation package for Musk. The plan sets a series of goals, including 12 market value targets: each goal is 50 billion US dollars more than the previous one, starting at 100 billion US dollars. At that time, Tesla's market value was about 59 billion US dollars. In 2021, Tesla The market value once exceeded 1 trillion US dollars, but now it has fallen back to 566 billion US dollars. According to this compensation plan, Musk will only receive a compensation of approximately US$56 billion after achieving all goals.
In 2022, Tesla shareholders took Musk to court, claiming that Musk spent most of his experience on other companies such as SpaceX. They also claimed that Musk used his control over the company and the board of directors to finalize this salary. plan, so shareholders want this remuneration agreement to be scrapped . On January 31 this year, a judge in Delaware declared Musk’s $56 billion compensation package invalid on the grounds that it was “unfair to shareholders.”
Source: CCTV Finance
