World’s biggest wealth fund rejects Elon Musk’s $1 trillion Tesla pay deal
Norway’s $2.1 trillion sovereign wealth fund has announced it will vote against Elon Musk’s proposed pay package at Tesla’s upcoming shareholder meeting, setting up a major showdown over what would be the largest CEO compensation deal in corporate history.
Shareholders will vote on Nov. 6 on a stock-based award valued at up to $1 trillion. Despite the size of the package and criticism that it could heavily dilute shareholders, the deal is still expected to pass thanks to strong investor support and a Texas law that allows Musk to vote his own stake — giving him roughly 13.5% voting power, News.Az reports, citing Reuters.
The Norwegian fund, Tesla’s seventh-largest investor with a $17 billion stake, praised Musk’s contribution to Tesla’s growth but said the award is simply too large and poses “key person risk.” It also plans to vote against two Tesla board members up for re-election and oppose the company’s broader equity compensation plan.
Proxy firms ISS and Glass Lewis have also urged investors to reject the package, arguing Musk could receive massive payouts even without meeting all performance targets. Tesla’s board has defended the plan, warning that Musk could leave the company if shareholders block it.
Musk’s previous $56 billion pay deal also faced legal and investor challenges — but was ultimately backed again by shareholders. Tesla argues he earns nothing unless the company’s valuation surges, with the maximum award only possible if Tesla reaches a staggering $8.5 trillion market cap.
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