A terse text message from 2023 is looming over the 2024 vote on Elon Musk’s $1 trillion pay package. “Friends are as friends do,” Musk reportedly wrote to the CEO of Norway’s wealth fund after the fund voted against his last pay deal.
Now, that same fund is again voting “no.” The $17 billion investor announced it would reject the new $1 trillion proposal, proving its principles on corporate governance outweigh any personal allegiance.
The fund’s CEO, Nicolai Tangen, had invited Musk to dinner in Oslo, but Musk declined after the “no” vote on the $56 billion package, texting that Tangen should not ask for favors after declining one.
In its new “no” vote, the fund cited “consistent views,” stating it is “concerned about the total size of the award, dilution and lack of mitigation of key person risk.”
This personal and financial drama sets the stage for a high-stakes shareholder meeting, as the Tesla board argues the pay is essential to retain its star CEO.