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Elon Musk Gets His $2.6 Billion Tesla Payout Plan, and SWFs are Not Excited About it

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Patient and optimistic Tesla shareholders approved an ostensibly performance-based compensation package worth an unprecedented US$ 2.6 billion for CEO Elon Musk on March 21, 2018, but not all of the electric car maker’s investors were happy about bestowing such largess. Norges Bank Investment Management (NBIM) and the California State Teachers’ Retirement System (CalSTRS) were among those who voiced their opposition to the measure, which passed with just 73% of votes cast in its favor, excluding votes made by Musk and his brother Kimbal. Most remuneration proposals for chief executives at similarly sized U.S. companies pass with 95% shareholder approval. However, technology-innovative companies with celebrity-like CEOs and having a founder still lead the enterprise are factors that typically permit such actions when it comes to compensation. The company’s shareholders are patient, hoping for an Amazon-like future. In 2017, Tesla burned through US$ 3.5 billion in cash.

Norway Sovereign Wealth Fund

Norges Bank Investment Management – which currently ranks among Tesla’s top 20 institutional shareholders with a 0.47% stake worth US$ 243 million) – did not provide an official explanation for its opposition to the payout. Norges Bank Investment Management oversees Norway Government Pension Fund Global. But Norway’s US$ 1 trillion sovereign wealth fund made its position on excessive executive pay abundantly clear in a paper on the topic published last April, in which it states its belief that compensation for CEOs should be capped and settled in cash or locked-in shares on an annual basis, and that is aligned with both long-term value creation and shareholders’ interests.

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ADIA Seeks to Sell KIC Headquarters

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The Abu Dhabi Investment Authority (ADIA) is seeking to sell the building that houses the headquarters of the Korea Investment Corporation (KIC). [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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BMO and OTPP Test Blockchain Canadian Dollar Debt Deal

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The Bank of Montreal (BMO) and the Ontario Teachers’ Pension Plan (OTPP) participated in a landmark blockchain Canadian-dollar debt transaction. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Just Group Acquires Corinthian Pension Consulting

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Just Group plc acquired a 75% ownership stake in the holding company of Corinthian Pension Consulting Limited (Corinthian Pension Consulting). Operating in the institutional world for over 12 years, Corinthian Pension Consulting provides advisory services to defined-benefit pension scheme trustees and scheme sponsors undertaking bulk scheme exercises. The remaining 25% will be retained by current shareholders of Corinthian Pension Consulting. Robert MacGregor will continue to lead Corinthian Pension Consulting, as its Chief Executive Officer. Furthermore, Corinthian Benefits Consulting Limited and Corinthian Affinity Solutions Limited will continue to operate as before, becoming part of a newly formed holding company, Corinthian Group Holdings Limited.

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