A text message about a “favour” has come full circle, as Norway’s sovereign wealth fund again rejects a massive payday for Elon Musk, this time a $1 trillion package.
Last year, after the fund voted “no” on a $56 billion deal, Musk declined a dinner invite from its CEO, Nicolai Tangen. Musk reportedly texted, “When I ask you for a favour… and you decline, then you should not ask me for one.”
Now, the fund is once again declining a “favour.” The $17 billion investor stated it will vote “no” on the new proposal, citing “consistent views on executive compensation” and “concerns about the total size.”
The Tesla board is asking shareholders for this “favour” to retain Musk, who they claim is essential to the company’s value.
But the Norwegian fund, along with advisory firms Glass Lewis and ISS, is prioritizing governance principles over personal favors, setting up a dramatic showdown at Thursday’s meeting.
