Norway’s sovereign wealth fund, the largest in the world, has opposed Elon Musk’s proposed $1 trillion compensation package at Tesla Inc. The fund, managed by Norges Bank Investment Management (NBIM), holds a 1.12% stake in Tesla worth approximately $17 billion.
Norway’s $2.1 Trillion Wealth Fund Rejects Musk’s Massive Tesla Payout
NBIM announced that it will vote against ratifying Musk’s pay plan at the automaker’s annual meeting on November 6. The influential investor cited concerns over the total size of the award, dilution, and lack of mitigation of key person risk.
Details of the Package
The package, potentially the largest CEO compensation deal ever, could grant Musk stock worth up to $1 trillion over 10 years if Tesla’s market value surges to $8.5 trillion, nearly six times its current level.
Tesla Board Warns Musk Could Walk If Deal Fails
Tesla Chair Robyn Denholm has cautioned shareholders that rejecting the plan could drive Musk to leave the company, emphasizing that the vote is crucial to secure the continued leadership that built the company.
Investor Reactions
Other major investors, including BlackRock, Vanguard, and State Street, have yet to disclose their positions. Baron Capital has announced that it will back the deal. However, some investment firms have expressed opposition to the package.
- Investment firm Gerber Kawasaki’s co-founder Ross Gerber blasted Tesla’s board for serving Musk’s interests over shareholders, calling it “the worst BOD” he had ever seen.
- The California Public Employees Retirement System (CalPERS) said it would vote against the plan, arguing it gave Musk too much power and was far larger than any other CEO’s pay deal.
- Gary Black of The Future Fund said there was a “near-zero chance” shareholders would reject the plan, calling it one of the largest in corporate history.
Support for the Package
Some notable figures have endorsed the package, praising Musk’s leadership, ambition, and role in driving Tesla’s growth in AI, robotics, and self-driving technology. These include:
- Michael Dell
- Cathie Wood
- Jim Cramer
The outcome of the vote will reveal whether shareholders favor rewarding Musk’s bold vision or reining in his record-breaking compensation.