Business update:One Of World’s Largest Investors To Vote Against Musk Pay Package.
The Norwegian Wealth Fund, officially the Government Pension Fund-Global (GPF-G), was founded in the 1990s using the nation’s massive oil and gas holdings. For a small country, the fund is huge. It made $213 billion last year on its $1.6 trillion portfolio. (Norway’s GDP is only about $550 billion, which ranks it 30th globally.) Over the years, it has invested in thousands of companies across scores of nations. Its influence in the investment world cannot be overrated. It said it would vote against Elon Musk’s Tesla (NASDAQ: TSLA)$56 billion pay package, as it did when it was initially introduced in 2018.
According to CNBC, the Government Pension Fund-Global (GPF-G) holds less than 1% of Tesla’s shares. However, for other major institutions worldwide, the size of the holdings is not the issue. The issue is that the fund is one of the most visible investors anywhere.
Investors are lining up for a vote about the pay package at Tesla’s annual meeting on June 13. One obstacle for Tesla’s board, which has championed the package, is that a judge invaded the arrangement because, as the court said, it was an” unfathomable” sum against shareholder interests.
A considerable amount is at stake. One issue is whether a judge should reverse a pay package investors have already approved. The other is that Musk may walk away from Tesla and spend more time with his other investments. Such an action would be a massive blow to Tesla. This is among the reasons for the board’s pay recommendation. The Government Pension Fund-Global (GPF-G) could tip the scales. Its place in the world of global investing is that large.
