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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] SEOUL, November 6 (local time) — South Korea’s largest institutional investor, the National Pension Service (NPS), announced that it will vote in favour of the proposed compensation package for Elon Musk, Chief Executive Officer of Tesla Inc., while simultaneously voting against a shareholder proposal to invest company funds in Musk’s artificial-intelligence startup, xAI.
According to the NPS’s public asset-management disclosure, the NPS will cast its vote in favour of Musk’s compensation plan at Tesla’s annual general meeting on November 6. The board of directors at Tesla has drafted a plan under which Musk could receive about 420 million ordinary shares of Tesla — distributed in 12 tranches until 2035 contingent upon achieving major performance milestones. The plan aims to raise Musk’s stake from approximately 13 % to over 25 %. The milestones include achieving a market capitalisation of US $2 trillion then ultimately US $8.5 trillion, delivering 20 million vehicles, obtaining 10 million subscriptions for Full Self-Driving software, deploying 1 million humanoid robots, operating 1 million robotaxis, and achieving an EBITDA of US $400 billion.
In contrast to the NPS’s position, Norway’s sovereign wealth fund, the Norges Bank Investment Management, announced it will vote against the remuneration package, citing concerns about the package’s magnitude, potential dilution, and the lack of sufficient risk-mitigation for key-person dependency.
The NPS further disclosed that it will support proposals on removing derivative litigation thresholds and modifying director-appointment cycles to annual terms. However, the NPS will vote against a proposal by Tesla’s board to authorise investment of company funds into xAI. The NPS explained its decision by stating, “Considering the shareholder-proposed purpose and evaluating whether it clearly enhances shareholder value, we oppose this proposal.”
According to the U.S. Securities and Exchange Commission (SEC) 13F filing as of the end of September, the NPS holds approximately 0.18 % of Tesla’s outstanding shares.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
