The world’s largest sovereign wealth fund, Norway’s Norges Bank, is using its significant influence to oppose Elon Musk’s $1 trillion pay package.
As Tesla’s seventh-largest shareholder, with a $17 billion stake, the fund’s “no” vote sends a powerful message to the carmaker’s board.
The fund stated that while it appreciates Musk’s “visionary role,” the “total size” of the award is “concerning.” It also cited “dilution” and “key person risk” as factors in its decision.
This is not the first time the fund has used its weight to challenge Musk’s compensation. It also voted against a $56 billion package last year, a deal that was ultimately voided by a Delaware court.
The Tesla board argues the package is essential to retain Musk. But with the world’s largest fund now joining advisory firms ISS and Glass Lewis in opposition, the proposal faces a serious threat at Thursday’s meeting.
