Norway's sovereign wealth fund, the world's largest, has announced it will vote against a $1 trillion (£765 billion) pay package for Tesla CEO Elon Musk at the company's annual shareholder meeting on Thursday. The fund, which is Tesla's seventh biggest single investor with a $17 billion stake, cited concerns over the award's size, dilution, and lack of mitigation of key person risk.
In a statement, Norges Bank said it appreciated the significant value created under Musk's leadership but would oppose the performance award. The fund's decision echoes its previous opposition to a $56 billion pay package for Musk last year, which was approved by shareholders but later rejected by a Delaware court.
The proposed deal could make Musk the world's first trillionaire if Tesla's value rises from about $1 trillion to $8.5 trillion over the next decade. Tesla chair Robyn Denholm has argued the vote is essential to retain Musk as CEO, warning the company risks losing significant value if he leaves.
Shareholder advisory groups Glass Lewis and ISS have recommended rejecting the package, alongside some large pension funds. Musk, who is Tesla's biggest single shareholder, can also vote on the proposal. The vote comes as Tesla faces falling sales globally, with declines in Europe and China, and a potential slowdown in its home market after US tax credits expired.
