Norway’s sovereign wealth fund is backing Microsoft Corporation (MSFT) in a vote tied to its human rights review. The fund is one of the largest investors in the stock and holds about $50 billion in shares at the end of June. The vote comes ahead of Microsoft’s annual meeting, which will take place on December 5.
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The proposal at issue asks Microsoft to assess its due diligence on human rights. However, the fund voted against the plan. The fund said Microsoft does not show clear gaps in its risk management for human rights. The fund also said its view is informed by its own policy on environmental and social issues. In addition, the fund said it looks at how firms move forward over time.
Microsoft faced fresh attention earlier this year after news that the Israeli military used its tools for mass surveillance in Gaza and the West Bank. After that, Microsoft shut off some of the tools once its team found that data from the watch work had been stored on its cloud system. The firm said that storage broke its own rules.
Meanwhile, MSFT shares rose 1.34% on Friday, closing at $492.01.
A Split Set of Votes from the Fund
The fund did support a different shareholder plan. That plan asks Microsoft to report on the risks associated with working in regions with significant human rights concerns. The fund backed the same plan in 2024, although that vote did not pass.
Meanwhile, the fund voted against re-electing Satya Nadella as Microsoft’s chair. The fund said it prefers that a chief executive officer and a chair hold different roles in a firm. This view is part of its long-run stance on strong board checks.
Norway’s sovereign wealth fund has used its votes to push for strict rules at other firms as well. For instance, it has pressed for board checks at Tesla (TSLA) and raised questions about pay at other large firms. The fund also paused its ethics council’s work this year as it reviews its guideposts following a public dispute tied to a past stock exit.
Overall, the fund’s vote on Microsoft shows that it backs the firm on rights risk at this point. Yet it still seeks stronger board checks as part of its plan for long-term value.
What Is the MSFT Stock Price Target?
On the Street, Microsoft has a Strong Buy consensus rating, based on 35 analysts’ ratings. The average MSFT stock price target is $629.98, implying a 28.04% upside.
