Norway's Sovereign Wealth Fund to Reject Elon Musk's $1 Trillion Pay Package
Norway's sovereign wealth fund announced it will vote against Tesla CEO Elon Musk's proposed compensation package, valued at nearly $1 trillion, during the company's annual shareholder meeting this week.
Musk, whose current net worth exceeds $400 billion, was expected to receive about $900 billion in a performance-based award and around 432 million additional Tesla shares, representing roughly a 25% ownership stake. If approved, the plan could make him the world's first trillionaire, according to The Guardian.
Opposition from Norges Bank Investment Management
Norges Bank Investment Management (NBIM), the world’s largest sovereign wealth fund and Tesla’s seventh-largest shareholder with a 1.14% stake, confirmed its opposition to the proposal.
“While we appreciate the significant value created under Mr. Musk’s visionary leadership, we are concerned about the total size of the award, dilution, and the lack of mitigation of key person risk — consistent with our views on executive compensation,” the fund said in a statement.
The statement added that NBIM intends to maintain constructive dialogue with Tesla on this and other matters.
Board’s Concern About Musk’s Role
Tesla board chair Robyn Denholm warned that the company could risk losing Elon Musk as CEO if shareholders reject the proposed compensation plan.
Author’s Summary
Norges Bank Investment Management will oppose Elon Musk’s $1 trillion pay deal at Tesla’s meeting, citing concerns over size, dilution, and CEO dependence.