Elon Musk’s $1tn Tesla pay plan opposed by Norway’s top wealth fund

The Norwegian Sovereign Wealth Fund, the world’s largest, has announced that it will vote against approving Elon Musk’s $1 trillion compensation package at Tesla.

The fund, managed by Norges Bank, is Tesla’s seventh-largest shareholder, holding shares worth about $17 billion. Although the fund acknowledged Musk’s major contributions and his role in Tesla’s success, it said the proposed pay deal is too large and therefore cannot be supported.

This decision comes just two days before Tesla’s annual shareholder meeting, where investors will vote on the massive incentive plan that could make Musk the world’s first trillionaire.

Under the proposal, Musk would receive new Tesla shares, increasing his ownership from 16% to 25%, if he manages to raise the company’s market value from $1 trillion to $8.5 trillion within the next 10 years.

Tesla’s chairperson, Robyn Denholm, urged shareholders to approve the package, saying that keeping Musk as CEO is crucial for Tesla’s future growth and value. She warned that the company could lose significant momentum if Musk were to leave.

However, the Norwegian fund’s opposition adds major pressure on the vote and raises the risk that the compensation plan might not pass.

The final decision will depend on how other large shareholders, including Tesla’s biggest investors, choose to vote in the upcoming meeting.

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