A sharp clash in priorities is defining the vote on Elon Musk’s $1 trillion pay deal. Tesla’s chair, Robyn Denholm, is warning of Musk’s exit, while Norway’s wealth fund is focused on the “total size” of the check.
Denholm has written to shareholders, arguing the vote is “essential” to retain the 54-year-old CEO and prevent a “significant value” loss.
The Norwegian fund, a $17 billion investor, remains unconvinced. It announced its “no” vote, stating it is “concerned about the total size of the award, dilution and lack of mitigation of key person risk.”
This sets up a classic governance battle: is it more important to pay any price to retain a “visionary” CEO, or is it more important to enforce consistent rules on executive compensation?
The Norwegian fund, which also voted “no” on Musk’s $56 billion deal, is holding firm to its principles. It is joined by advisory firms ISS and Glass Lewis, which also find the “total size” of the award unjustifiable.