Norway's mega wealth fund to reject Elon Musk's $1 trillion Tesla pay package

Norway's sovereign wealth fund, valued at $2 trillion, has announced its decision to oppose Elon Musk's staggering pay package during Tesla's upcoming annual shareholder meeting. This move marks a significant deviation from the management's recommendations and comes amid Musk's warnings about resigning if the package is not approved. Norges Bank Investment Management (NBIM), which oversees this substantial fund and holds a notable stake in Tesla, stated on Tuesday that it has already cast a vote against Musk's compensation plan as CEO. In a public statement, NBIM expressed appreciation for the remarkable value generated under Musk's leadership but raised concerns regarding the overall magnitude of the proposed award, potential shareholder dilution, and the absence of measures addressing key person risk associated with such a compensation scheme. The fund emphasized its commitment to engaging in constructive discussions with Tesla regarding this matter and other significant issues. In response to the news, Tesla's stock dipped by 2.4% in premarket trading. The board of Tesla is urging shareholders to support a pay plan for Musk that could potentially grant him nearly $1 trillion in stock options, alongside increased voting rights within the company. This substantial award is contingent upon Tesla achieving specific performance milestones over the next decade.