Elon Musk, CEO of Tesla, has been making headlines for threatening to take his idea to another company if he does not see an increase in his ownership stake as per the terms of his incentive package. The Norwegian oil fund, NBIM, which is one of the world’s largest investors, has taken a stance against Tesla’s $56 billion CEO bonus. The fund, which owns nearly one percent of Tesla, opposes the compensation system that would award Musk this bonus.
NBIM has been against these incentives since 2018 and continues to express its opposition. In response to the pushback from NBIM and the potential lack of support for his increased ownership stake, Musk has threatened to develop new products outside of Tesla. This threat highlights the tension between Musk and the company’s investors over his compensation package and ownership stake.
Earlier this year, a Delaware court invalidated a vote by Tesla on Musk’s incentive package, citing that investors were not fully informed of the terms of the incentives at the time. However, this decision does not prevent the general meeting from approving Musk’s package. The outcome of the vote at the upcoming general meeting will likely have significant implications for the future of Musk’s role at Tesla.
