Norway’s wealth fund vote is latest blow to Musk’s $1 trillion pay package

Norway’s sovereign wealth fund has cast a negative vote on a proposal to award Tesla CEO Elon Musk a staggering compensation package amounting to $1 trillion. Managed by Norges Bank Investment Management, the fund holds a 1.14% stake in Tesla, which is currently valued at approximately $11.7 billion, as per its mid-year reports from June. In an official statement, the fund expressed its appreciation for the substantial value Musk has created through his leadership but raised concerns regarding the overall magnitude of the compensation, potential dilution of shares, and the absence of measures to address key person risk. The fund emphasized its commitment to maintaining a constructive dialogue with Tesla on this and other pertinent issues. While the fund's opposition might not be definitive in halting the proposal, it represents yet another challenge for Tesla in its ongoing efforts to persuade shareholders to approve what could become the largest corporate performance pay package ever recorded. Additionally, advisory firms such as ISS and Glass Lewis have also advised against endorsing the compensation plan. Musk has defended the package by stating that it is less about financial gain and more about retaining control over the company. He reiterated this stance during Tesla's recent third-quarter earnings call, even hinting at the possibility of stepping away from the company if the proposal does not receive approval.