Norwegian Wealth Fund Rejects Elon Musk’s $1 Trillion Compensation Package for Tesla

Norway’s sovereign wealth fund has declared its intention to oppose Tesla’s proposed $1 trillion (£765 billion) compensation package for Chief Executive Elon Musk.

The largest national wealth fund stated that it acknowledges “the remarkable value created under Mr. Musk’s visionary leadership” but will vote against his performance-based award.

“In line with our stance on executive compensation, we are worried about the total remuneration, dilution, and the absence of risk mitigation for essential personnel.” “We remain eager to engage in constructive discussions with Tesla on this and other matters.”

The alert from Norges Bank, Tesla’s seventh-largest single shareholder with $17 billion in stock, arrived just two days prior to Tesla’s annual shareholder meeting.

On Thursday, shareholders are expected to vote on an extraordinary incentive proposal that could propel Elon Musk to become the world’s first trillionaire.

If Musk escalates Tesla’s valuation from approximately $1 trillion to $8.5 trillion over the next decade, he would be granted new shares, and his ownership stake would increase from nearly 16% to over 25%.

This would boost the wealth of the world’s richest man to over $2 trillion.

Tesla Chairman Robin Denholm emphasized that this vote is crucial to retaining Musk, 54, as the company’s CEO, stating in a letter to shareholders that the company might lose “significant value” should he depart.

Last year, the Norwegian Oil Fund opposed Musk’s $56 billion compensation plan, which was the largest in U.S. corporate history at the time. Although it was approved by shareholders in June, a Delaware court later rejected it a second time in December.

Nikolai Tangen, the chief executive of the Norwegian fund, had invited Musk and other CEOs to a dinner in Oslo last year, but Musk declined after the fund voted against the $56 billion compensation package.

Text exchanges between Tangen and Musk were disclosed in a Freedom of Information request by Norwegian business magazine DN. The newspaper reported that Musk texted Tangen in October last year: “It’s not often that I ask you for a favor and you say no. Then you shouldn’t ask me for a favor until I do something more than make up for it. A friend is a friend.”

Skip past newsletter promotions

Shareholders are split on the proposed deal, with two significant shareholder advisory firms, Glass Lewis and ISS, both advising investors to reject the $1 trillion package.

Several major pension funds are also against the pay structure, including the American Federation of Teachers and the California Public Employees’ Retirement System, the largest public system in the nation.

Musk, being Tesla’s largest single shareholder, also has a vote on the proposal.

Last month, Tesla’s president stated on the social media platform X, which he acquired in 2022, “Tesla is worth more than all the other car companies combined. Which CEO would want to run Tesla? It wouldn’t be me.”

Tesla was approached for comment.

Source: www.theguardian.com

Tesla Presents Elon Musk with a Trillion-Dollar Compensation Package

Elon Musk might become the first individual to exemplify a significant milestone as he targets ambitious goals set by Tesla, where he holds the largest shareholding, in a plan unveiled by the electric vehicle giant.

In the recent stock market update, Tesla detailed an incentive package that is unparalleled in corporate history, stating, “Yes, I’m interpreting this correctly.”

The company reported that Musk aims to elevate its market value from over $1 trillion today to an astonishing $8.5 trillion over the next decade.

If he achieves this level of growth, the 54-year-old mogul could obtain additional shares in the company, raising his stake from nearly 16% to more than 25%, thus propelling the world’s richest individual’s fortune to exceed $200 billion.

Current estimates of Musk’s net worth vary; however, live rankings from Forbes indicate that the South African-born entrepreneur’s wealth stands at $43.09 billion, while Larry Ellison, co-founder of Oracle, follows with $200 billion.

Tesla’s incentive plan was revealed in a filing with the U.S. Securities and Exchange Commission on Friday.

This filing paved the way for a potential $55.8 billion bonus, linked to a compensation deal that Musk received in 2018, approved by Tesla shareholders.

“Ultimately, this new award aims to build on the successes of the CEO Performance Awards framework established in 2018, ensuring that Elon is compensated solely based on performance and motivating him to steer Tesla through its growth phase,” the company stated.

Tesla noted that the new plan also sets a profit goal of 28 times that of the 2018 scheme, depending on the success of new offerings, such as operating 1 million “Robotaxis” and developing 1 million AI-driven Humanoid Robots.

Skip past newsletter promotions

In defense of Musk’s potential compensation, Tesla noted: “His leadership propels Tesla to become the most valuable company in history.”

The projected $8.5 trillion market value more than doubles the current valuation of Nvidia, the leading chip manufacturer presently recognized as the world’s most valuable company.

Source: www.theguardian.com

Researchers receive compensation for investigating maple syrup. Additionally, he earns a salary for endorsing it.

For over a decade, biomedical researcher Navindra Seeram praised maple syrup, calling it “hero ingredients” and “champion food,” and could have a wide range of health benefits.

Dr. Sheelam, dean of the University of New England’s Pharmacy, has published more than three dozen studies celebrating the power of maple. Much of his work is bankrolled by the Canadian maple syrup industry and the Canadian and American governments.

At the same time, he took on another role: Maple Syrup Pitchman.

“I am uniquely qualified as a world-leading researcher on the benefits of maple health due to its scientific reputation and reliability to promote the sale of maple products,” he wrote in his grant application. He assures Canadian industry leaders that he will always support Quebec’s maple, according to emails obtained in the request for public records.

As he spans the real-world meaning of his research and exaggerated health benefits, he distorted the real-world meaning of his research and exaggerated health benefits. Videos and press releases suggest that taking maple syrup can help stop illnesses like cancer, Alzheimer’s disease, and diabetes. Other scientists said they thought he exaggerated and misleading the test and the findings of his lab.

Industry funding is common in nutrition research and could become even more important as scientists tackle drastic cuts in the Trump administration. Dr. Seeram’s work illustrates the dangers of a science-sales intertwining that drives information that can shape consumer habits and public health.

At the University of Rhode Island, where he worked until last year, Dr. Sheelam oversaw a project awarded $2.6 million in US government funding, including grants aimed at explicitly increasing sales of maple syrup. That promotional work produced streams of Social Media Posts “The benefits of maple syrup: anti-cancer, antioxidant, anti-inflammatory agents.”

in video Posted on YouTube in 2019, Dr. Seeram said the nutrients in maple syrup “may prevent and/or delay the onset of conditions” such as “cardiovascular disease, metabolic syndrome, brain disease, etc.”.

However, his research found something more limited. Maple syrup contains small amounts of polyphenols in plant compounds that are generally considered beneficial. To demonstrate their effects, he tested highly concentrated maple extracts in lab settings rather than people’s consumption of commercial maple syrup.

Dr. Sheelam told the exam he believes in the power of natural medicines, part of the upbringing in South America. And he defended how he spoke about his findings. “No one can go back to quote directly from me.

… (remaining content follows the same structure)

Source: www.nytimes.com

Elon Musk enlists ‘high-IQ revolutionaries’ to volunteer on President Trump’s new project without compensation.

Elon Musk and Vivek Ramaswami are “high-IQ small-government revolutionaries” who are calling on Americans willing to work 80+ hours a week to join their new Ministry of Government Efficiency for no pay.

In a recent X post, which also served as an announcement of his appointment and a playful jab at Mr. Musk, the newly appointed president’s account stated: We are seeking ultra-high IQ small-government revolutionaries who are ready to work over 80 hours a week to bring costs down to earth.”

The department, not associated with the federal government, bears a resemblance to the popular Shiba Inu meme.

“If this sounds like you, please DM this account with your resume. Elon & Vivek will evaluate the top 1% of applicants,” the statement added.

Musk reiterated the call in another post, stating: “Yes, this may be a mundane job. You will make plenty of adversaries and receive no compensation.”

“How delightful!” Musk, the wealthiest person in the world, wrote with a laughing emoji. He pledged to reduce federal bureaucracy by a third and decrease U.S. government spending by $2 trillion, but acknowledged that the process “will inevitably involve temporary challenges.”

Earlier this week, President Donald Trump announced the appointment of Musk and Ramaswamy as president, emphasizing that they will lead efforts to streamline government bureaucracy, reduce excessive regulation, eliminate wasteful spending, and overhaul federal agencies. This is crucial to the “Save America” movement.

President Trump described the newly formed department as a “modern-day ‘Manhattan Project,'” likening it to the U.S.-led research program during World War II aimed at developing a nuclear bomb, which he noted came at a human cost. Estimation [Japan’s population in 1945 was 214,000].

Since the first attempt on Trump’s life in July, Musk has emerged as one of the president’s most devoted supporters, at one point dubbing himself a “Dark Maga” during the campaign. He contributed $120 million to the president-elect’s campaign, hosted rallies in Pennsylvania, and vigorously promoted Trump’s message on X.

Skip past newsletter promotions

Following Trump’s re-election, Musk shared an edited photo of himself holding a sink in the Oval Office, with text that read “Please sink.”

This image recalls a promotional campaign from October 2022, shortly after Musk sealed a $44 billion deal to acquire X (formerly Twitter). Musk entered the headquarters carrying Sink. According to new estimates from Fidelity, X’s value has dropped nearly 80% since Musk’s acquisition two years ago.

The caption with the featured photo was updated on November 14, 2024. A previous version erroneously identified the image as depicting Donald Trump when it was intended to be Elon Musk.

Source: www.theguardian.com

Tesla asserts Elon Musk was awarded a $56 billion compensation package even though a judge found it to be invalid.

According to court documents released on Friday, Tesla Inc. states that Elon Musk has emerged victorious in a legal battle over his $56 billion compensation package. This victory comes after shareholders voted in favor of the pay, despite a judge previously setting it aside earlier this year.

The company’s submission comes following Tesla shareholders’ approval of his stock option package for 2018, conducted two weeks ago. This decision was made after a Delaware judge voided the compensation in January due to alleged mismanagement by Musk during negotiations and misleading shareholders about critical details.

The ongoing lawsuit has strained Musk’s relationship with Tesla, as the company grapples with declining sales and mounting competition. Musk has hinted at developing products outside of Tesla if he fails to secure a larger ownership stake.

In its proposal, Tesla has outlined to Delaware Chancery Court Judge Katherine McCormick how the final order should be drafted to implement her January ruling. The company argues that the order should declare “judgment is entered in favor of the defendants.”

Shareholders’ lawyers are urging the judge to uphold the previous ruling that invalidated Musk’s compensation package. They are seeking a directive for Tesla to issue billions of dollars in Tesla stock to cover legal expenses.

Tesla has suggested a fair fee of up to $13.6 million.

McCormick has instructed both parties to prepare briefs discussing the impact of the shareholder vote on the case and to schedule oral arguments on the matter in late July or early August.

Oral arguments on costs are set for July 8, with a decision likely to be reached after several weeks. Even if the January ruling remains unchanged, McCormick may acknowledge that the shareholder vote indicates little merit in winning the case, as Tesla shareholders appear to desire substantial compensation, which could undermine the plaintiffs’ attorneys’ fee claim based on the value they have provided by overturning the compensation packages.

Source: www.theguardian.com

Elon Musk’s $45 Billion Compensation Package Approved by Tesla Shareholders

Tesla shareholders have given their approval to a contentious referendum regarding CEO Elon Musk’s leadership, resulting in an agreement to pay him $45bn (£35.3bn).

The results, which were released on Thursday, reflect a struggle for the billionaire tycoon to retain the largest compensation package ever awarded to an executive at a publicly traded U.S. company.

“First of all, I want to say I love you guys so much!” said Musk, expressing his elation as he took the stage after the vote.


The vote followed a ruling by a Delaware judge in January that invalidated a previous payment to Musk, which was then valued at about $56bn (£439m), citing lack of board independence from Musk’s influence and an unlawful process in reaching the amount.

The outcome is seen as a win for Musk and the Tesla board, who actively lobbied shareholders to support the deal. It could potentially challenge the judge’s decision to nullify the payment and aid in demonstrating that shareholders were adequately informed about the payment and directors’ relationships with Musk prior to voting.

Tesla’s board cautioned that Musk may sever ties with the company if the package was not approved, but Musk asserted he had substantial backing from investors.

Despite opposition from major shareholders like Norway’s sovereign wealth fund and the California State Teachers Retirement System, as well as proxy advisory firms Glass Lewis and Institutional Shareholder Services, the vote does not automatically guarantee the release of the funds, and further legal debates are expected.

The vote may trigger additional litigation that could prolong legal proceedings, and the approval of relocating Tesla’s legal headquarters from Delaware to Texas could complicate the matter further.

Tesla initially introduced Musk’s compensation package in 2017, which included stock options based on meeting specific company goals. The package was approved by shareholders in 2018 but faced legal challenges alleging board deception and unfairness.

Judge Katherine McCormick of the Delaware Chancery Court criticized Tesla’s board process for determining Musk’s compensation, highlighting conflicts of interest and close relationships with Musk’s associates. Despite this, the board aims to challenge Judge McCormick’s ruling.

Source: www.theguardian.com

Elon Musk Confirms Tesla Shareholders to Vote on $56 Billion Compensation Package

Tesla shareholders are set to approve Elon Musk’s $56 billion remuneration package by a significant margin before the company’s important annual general meeting later today. The compensation package, the largest ever granted to a CEO of a U.S. company, will be subject to an investor vote after being previously rejected by a U.S. court this year. Shareholders will also vote on Musk’s proposal to relocate Tesla’s legal base to Texas.

Several investors, including Norway’s sovereign wealth fund and the California State Teachers Retirement System, have indicated their intent to oppose the compensation package. Proxy advisory firms Glass Lewis and Institutional Shareholder Services have also advised shareholders to reject the pay.

On the eve of the meeting, Musk suggested on X (formerly Twitter) that investors overwhelmingly supported both the compensation package and the Texas relocation: “Both Tesla shareholder resolutions have now passed by large margins! Thank you for your support!!”

The results will be disclosed at Tesla’s headquarters in Texas at 4:30pm ET (9:30pm UK time).

Even if the remuneration package is approved, Musk may encounter further obstacles, including potential litigation. Legal experts doubt that the Delaware court that rejected the initial package would accept a new, nonbinding vote to reinstate it.

Originally approved by Tesla’s board in 2018, the compensation has faced legal challenges from shareholders. Judge Kathleen McCormick of Delaware raised concerns about the size and necessity of the package in her January ruling.

Skip Newsletter Promotions

In her ruling, McCormick questioned the necessity of the compensation plan, stating, “Perhaps swayed by the ‘all-positive’ rhetoric or enthralled by Musk’s superstardom, the board never asked the $55.8 billion question: Was this plan truly necessary for Tesla to retain Musk and achieve its goals?”

Source: www.theguardian.com

Compensation Claims for $32 billion Over Russia’s Carbon Emissions During Ukraine War

A building damaged by a drone strike in Kiev in October 2022

Roman Fritzina/Associated Press/Alamy

A group of climate experts estimates that the first two years of Russia's war in Ukraine will result in greenhouse gas emissions equivalent to about 175 million tonnes of carbon dioxide.

The extra warming caused by these emissions will lead to extreme weather events around the world, with impacts estimated at $32 billion.

Ukraine intends to add these climate-related costs to the list of damages for which Russia is responsible and for which it seeks compensation.

“This will be an important pillar in the compensation case we are building against Russia,” Ukrainian Minister of Environmental Protection and Natural Resources Ruslan Strylets said in a statement.

“These are the costs to economies and societies caused by extreme weather events due to emissions-driven climate change,” said Leonard de Klerk, a climate businessman and founder of the War Greenhouse Gas Accounting Initiative.

The group today Fourth evaluation The report estimated the impact of the war from February 2022 to February 2024. It found that rebuilding bombed-out buildings, roads and other infrastructure was the biggest source of emissions, accounting for almost a third of the 175 million tonnes – a figure that also includes reconstruction that has yet to take place.

The remaining third is a direct result of the war, with fuel use accounting for the largest proportion.

About 14% of the total is due to passenger airlines having to reroute flights to avoid Russia and Ukraine. For example, a flight from Tokyo to London now travels over Canada instead of Russia, increasing flight times from 11 to 15 hours.

About 13 percent is due to an increase in wildfires recorded on satellite imagery, which is due not only to weapons-fired fires but also an end to fire management in occupied territories, the assessment said.

In most cases, there is a great deal of uncertainty around the figures as there are no official figures to rely on, and instead the group must rely on open source assessments and figures from past conflicts.

There's also the issue of how far to go in assessing the cascading effects of war: “We try to be as comprehensive as possible,” de Klerk says, “but at the same time, there are limitations. Some effects are too remote or too hard to quantify.”

Estimating how much damage additional emissions will cause (known as the social cost of carbon) is another tricky area: “The science of trying to put a monetary value on future damages is still developing,” says de Klerk.

The estimated figure of $32 billion Based on 2022 research The social cost of carbon is about $185 per tonne of CO2.

If this amount, which is growing every day, were to be paid, De Klerk thinks that one part should be sent to Ukraine to be used for measures such as reforestation and helping to capture some of the carbon, while the other part should go to the countries most affected by global warming, probably through the existing system. Green Climate FundBut where that money will go is a political decision that has yet to be resolved.

Low-income and small island nations have fought for decades to establish the principle that high-income countries with large greenhouse gas emissions should compensate them for loss and damage caused by their emissions. A loss and damage fund was finally established last year as part of an international climate agreement.

topic:

Source: www.newscientist.com

Tesla’s Chairman warns that Elon Musk may step down if shareholders reject $56 billion compensation package

The chairman of Tesla has suggested that Elon Musk might leave the company if shareholders do not support his $56 billion (£44 billion) pay package, implying that Musk has other opportunities to explore. Despite the vote next week on the CEO’s compensation deal, Robin Denholm emphasized that the decision is not solely about money, as Musk will still be one of the richest individuals regardless of the outcome.

Denholm mentioned that if the June 13 vote does not go in Musk’s favor, he could potentially depart from Tesla or reduce his presence at the company. In 2018, investors approved a similar compensation plan for Musk, which was later invalidated, prompting the board to seek investors’ approval once more.

Denholm emphasized the importance of Musk’s time and energy, stating that while he has many ideas and potential endeavors, Tesla and its owners should be his primary focus. Concerns have been raised by some investors about Musk’s engagement with Tesla given his involvement in other ventures like SpaceX, xAI, and X.

Denholm clarified that the compensation package includes a provision requiring Musk to hold the Tesla shares he receives for five years before selling any of them. With Musk’s net worth at $203 billion, he is currently ranked as the third wealthiest person globally, according to Bloomberg.

ISS and Glass Lewis have advised shareholders to vote against the proposed pay package, citing excessive payouts. Despite differing opinions among major investors, Denholm stressed the need to uphold the 2018 agreement to ensure Musk’s continued dedication and commitment to Tesla.

Skip Newsletter Promotions

In a bid to streamline operations and facilitate growth, Denholm proposed relocating Tesla’s legal domicile to Texas, highlighting the state’s favorable corporate laws and potential for innovation. She noted that Texas legislators and courts are well-equipped to handle Tesla’s future endeavors effectively.

Analyst Dan Ives believes that while Musk is unlikely to leave Tesla entirely, a rejection of the compensation package could lead to his stepping down as CEO and reducing his involvement with the company over time.

Source: www.theguardian.com

Vermont Mandates Fossil Fuel Companies to Provide Compensation for Climate Damage

Vermont’s groundbreaking new law is set to become the first in the United States to mandate that fossil fuel companies contribute to the expenses associated with weather-related disasters caused by climate change.

The bill was authorized by Republican Governor Phil Scott on Thursday night without his signature, following its passage in the state Legislature with majority support from Democrats.

According to Vermont law, the Climate Superfund Act is designed to hold companies accountable, similar to the EPA’s Superfund program, by requiring large oil and high-emission companies to cover expenses related to preparing for and recovering from extreme weather events resulting from climate change.

The companies subject to taxation and the specific amounts they must pay will be determined based on a calculation of the role of climate change in Vermont’s weather disasters and the costs incurred by the state. Each company’s share will be based on their carbon dioxide emissions between 2000 and 2019.

Following the bill’s passage in Vermont, there was uncertainty among state lawmakers regarding Governor Scott’s potential veto of the legislation. In a memo to lawmakers, Scott expressed concerns about the bill’s impacts.

However, supporters of the law celebrated its enactment, viewing it as a step towards holding major polluters accountable for environmental damage. Elena Millay, vice president of the Vermont Environmental Protection Law Foundation, praised the legislation.

Ethan Poplawski’s family home was destroyed in a landslide in July 2023 in Lipton, Vermont.
Jessica Rinaldi/The Boston Globe via Getty Images file

Lauren Hierle, executive director of Vermont Environmental Voters, highlighted the importance of the Climate Superfund in distributing cleanup costs fairly and preventing taxpayers from bearing the burden alone.

The funds collected from fossil fuel companies under the new law will go towards upgrading infrastructure, securing schools and public buildings against extreme weather, storm cleanup, and reducing public health expenses related to climate change. State agencies will determine each company’s financial obligations by 2027.

While the law is expected to face legal challenges, including potential lawsuits, critics like the American Petroleum Institute argue that the fees are unjust and damaging to the energy industry.

Other states such as Massachusetts, Maryland, and New York are also contemplating similar legislation in response to escalating climate disasters, showcasing a growing need for financial resources to support recovery efforts.

Jennifer Rushlow, a Vermont Law School professor, emphasized the significance of Vermont’s law in setting a precedent for resilient climate Superfund legislation that could be adopted by other states.

Source: www.nbcnews.com

Elon Musk relocates SpaceX to Texas following reduction of $56 billion compensation to Tesla by Delaware judge

SpaceX, the rocket company, has relocated its corporate headquarters from Delaware to Texas, as announced by CEO Elon Musk.

Musk stated, “SpaceX has moved its state of incorporation from Delaware to Texas. If your company is still incorporated in Delaware, we recommend moving to another state as soon as possible.” This announcement was made on the platform.

This move comes after a Delaware judge ruled in favor of Tesla investors in a lawsuit alleging that Musk’s $56 billion compensation was excessive. Musk, who also serves as Tesla’s CEO, recently announced plans for a shareholder vote to move Tesla’s corporate domicile to Texas as well.


Musk also mentioned, “The people’s vote is unequivocally in favor of Texas! Tesla intends to immediately conduct a shareholder vote to move its incorporated state to Texas.” This statement was made earlier this month after a public opinion poll indicated support for the incorporation change.

In January, a Delaware judge nullified Musk’s compensation package, citing improper actions by the electric car maker’s board of directors.

This decision follows a lawsuit filed five years ago by Tesla shareholder Richard Tornetta, accusing Musk of improperly directing negotiations over his compensation package and the board of directors of lacking independence.

Musk’s compensation deal with Tesla is the largest ever for an executive, contributing significantly to his fortune, which ranks among the largest in the world. Musk testified at his compensation trial in November 2022 that the money would be used to fund interplanetary travel.

Neuralink, Musk’s brain chip implantation company, also moved its location from Delaware to Nevada last week.

Reuters contributed to this report

Source: www.theguardian.com

Elon Musk’s $56 billion compensation for Tesla deemed excessive by judge

In a court filing on Tuesday, a Delaware judge ruled in favor of investors who contested Elon Musk’s $56 billion pay package from Tesla, stating that it was excessive. The judge concluded that the compensation had been improperly established by Tesla’s board of directors and revoked it. If the decision is upheld in a potential appeal, Tesla’s board would need to create a new compensation plan for Musk.


Elon Musk responded on Twitter/X, saying, “Never incorporate a company in Delaware.”

Five years ago, Tesla shareholder Richard Tornetta filed a lawsuit accusing the company’s CEO, Elon Musk, of improperly directing negotiations on compensation packages and the board of directors lacking independence. The court’s decision directed Tornetta to cooperate with Musk’s legal team regarding the judge’s order, which can be appealed to the Delaware Supreme Court.

Musk’s compensation trial in November 2022 revealed that the money would be used to fund interplanetary travel. He testified, “This is how we’re going to get humans to Mars, so Tesla can help potentially achieve that.”

Tesla’s board argued that the package was necessary to keep Elon Musk committed to the electric car maker. The judge disagreed, noting that the defense failed to prove the need for such an unprecedented compensation plan. She instructed the parties to work on the final order implementing her decision.

The plaintiffs’ legal team also argued that the board had a duty to either reduce Musk’s salary or find another CEO and ensure that he worked full-time at Tesla instead of focusing on other projects.

Skip past newsletter promotions

Amit Batish of executive compensation research firm Equilar estimated in 2022 that Musk’s package was about six times the combined compensation of the 200 highest-paid executives in 2021.

In July, Tesla directors agreed to return $735 million to the company to settle shareholder claims that the company had overpaid in a separate lawsuit.

Source: www.theguardian.com