Tesla CEO Elon Musk and Nicolai Tangen, CEO of Norway’s sovereign wealth fund, Norges Bank Investment Management (NBIM), recently engaged in a tense exchange following a declined dinner invitation. The disagreement stems from NBIM’s vote against Musk’s substantial compensation package at Tesla’s 2023 annual general meeting.
NBIM, one of Tesla’s largest shareholders with a nearly $6 billion stake as of June 2023, voted against the proposed $56 billion pay package citing concerns over its size and structure. This decision seemingly sparked friction between the two CEOs.
Following the vote, Tangen extended an invitation to Musk to attend a private dinner at his residence, followed by a one-day conference in Oslo hosted by the wealth fund in April 2024. Musk declined the invitation in an October 14th iMessage, pointedly referencing the prior disagreement. “When I ask you for a favor, which I very rarely do, and you decline, then you should not ask me for one until you’ve done something above nothing to make amends,” Musk wrote. He added, “Friends are as friends do.”
Tangen responded the following day acknowledging Musk’s message and expressing continued support for Tesla. “Noted and fully understand. As a large shareholder we cheer for you. Good luck with everything. Best Nicolai,” Tangen replied.
The public disclosure of this exchange, initially reported by e24.no, comes amidst heightened scrutiny of both Tesla and its CEO. NBIM confirmed the authenticity of the messages and stated its decision to release them was due to increased public interest. “As one sees from the SMSes, some of the dialogue was linked to our voting record at Tesla, where we voted no to Elon Musk’s pay package, among other votes,” an NBIM spokesperson clarified. The fund’s transparency in this matter underscores its commitment to responsible investing and open communication with its stakeholders.
This incident highlights the complex relationship between CEOs and major institutional investors, particularly when corporate governance practices come under scrutiny. While NBIM’s vote reflects its fiduciary duty to act in the best interests of its beneficiaries, Musk’s response reveals the potential for tension when investment decisions clash with personal relationships. The long-term impact of this disagreement on the relationship between Tesla and one of its most significant investors remains to be seen. Ultimately, the exchange underscores the growing importance of Environmental, Social, and Governance (ESG) considerations in investment decisions and their potential to influence relationships between companies and their shareholders.
