Norway’s $1.7 trillion sovereign wealth fund announced on Saturday its decision to vote against ratifying Tesla (TSLA.O) CEO Elon Musk’s $56 billion compensation package, which is up for a shareholder vote next week. This follows a Delaware judge’s decision earlier this year to invalidate the package.
According to LSEG data, the fund is Tesla’s eighth-largest shareholder.
Approved in 2018, Musk’s pay package, the largest for any CEO in corporate America, was voided by a judge who deemed the amount unfair to shareholders, describing it as an “unfathomable sum.”
The fund acknowledged the “significant value generated under Mr. Musk’s leadership since the grant date in 2018.” However, Norges Bank Investment Management (NBIM), the fund’s operator, expressed concerns about “the total size of the award, the structure given performance triggers, dilution, and lack of mitigation of key person risk.”
In 2018, the fund had also voted against the package.
“We will continue to seek constructive dialogue with Tesla on this and other topics,” NBIM added.