Norway’s $2 Trillion Wealth Fund Turns Against Elon Musk’s $1 Trillion Tesla Pay Deal
Norway’s $2 trillion sovereign wealth fund, the world’s largest, has announced that it will vote against Elon Musk’s record-breaking $1 trillion compensation package at Tesla’s upcoming shareholder meeting, challenging the company’s leadership and Musk’s influence.
The fund, officially managed by Norges Bank Investment Management (NBIM) and a major Tesla shareholder, revealed on Tuesday that it had already cast its vote against the proposed compensation plan.
“While we acknowledge the immense value generated under Mr. Musk’s leadership, we remain concerned about the overall scale of the award, potential shareholder dilution, and the lack of safeguards addressing key person dependency,” NBIM said in its statement.
The Norwegian fund emphasized that it will continue to engage in “constructive dialogue” with Tesla’s management to promote stronger corporate governance and balanced executive pay structures.
Tesla shares dropped 2.4% in premarket trading following the announcement.
The Tesla Board of Directors has urged shareholders to back the plan, which could award Musk nearly $1 trillion in stock options over the next decade if the company meets ambitious growth and performance targets. The proposal would also expand Musk’s voting power, further strengthening his control over the automaker.
However, the move by Norway’s fund underscores growing investor resistance to ultra-high executive compensation packages, particularly those tied to long-term share performance.
The outcome of the shareholder vote will be closely watched across global markets, as it could influence future standards for CEO pay and corporate accountability in the world’s most valuable companies.
