One of Tesla’s most significant investors has publicly rejected the proposed $1 trillion compensation plan for CEO Elon Musk, labeling the package “concerning” due to its sheer scale.
Norway’s sovereign wealth fund, which holds a $17 billion stake in the automaker, confirmed it will vote against the measure at the upcoming annual meeting. The fund is the seventh-largest shareholder in the company.
In a statement, the fund said, “We are concerned about the total size of the award, dilution and lack of mitigation of key person risk.” This reflects a consistent stance on executive pay, as the fund also voted against a smaller $56 billion package last year.
The proposal, which could make Musk the world’s first trillionaire, is designed to keep him at the helm as Tesla attempts to grow its valuation to an eye-watering $8.5 trillion. If he succeeds, his stake would climb to over 25%.
This dispute reprises a conflict from last year over the $56 billion deal, which was voided by a Delaware court. After the fund voted no, Musk personally rebuffed an invitation from the fund’s CEO, highlighting the high-stakes personal dynamics at play.