A “no” vote on Elon Musk’s $1 trillion pay deal is reigniting a personal spat that began when Musk “declined” a “favour” from the CEO of Norway’s wealth fund.
Last year, after the fund voted against Musk’s $56 billion package, CEO Nicolai Tangen invited Musk to dinner. Musk refused, reportedly texting, “When I ask you for a favour… and you decline, then you should not ask me for one.”
Now, the fund is declining another “favour.” The $17 billion investor will vote “no” on the new $1 trillion proposal, citing the “total size” and “key person risk.”
The Tesla board is asking shareholders to approve this “favour” to retain Musk, who they claim is essential to the company’s value.
But the Norwegian fund, along with advisory firms ISS and Glass Lewis, is once again prioritizing its governance principles over a “friendship,” setting the stage for a tense vote.