In a significant move that could sway the outcome of Tesla’s upcoming shareholder vote, Norway’s $1.5 trillion sovereign wealth fund has said it will oppose Elon Musk’s proposed $1 trillion pay package. The fund, a long-term Tesla investor, expressed concerns about the plan’s unprecedented scale and its implications for governance.
The fund stated that while Musk had been instrumental in Tesla’s transformation, the new package “raises questions about proportionality and fairness.” It warned that such an award could undermine investor confidence and distort future compensation standards for corporate leaders.
Tesla’s proposal links Musk’s payout to extreme performance targets, including achieving a company valuation of $8.5 trillion. If reached, the payout could raise Musk’s stake in Tesla to over 25%, reinforcing his dominance within the company.
Tesla’s leadership argues the plan aligns Musk’s incentives with long-term growth. The board’s chair, Robyn Denholm, has emphasized that “Tesla’s success is deeply tied to Musk’s vision,” urging shareholders to back the proposal to ensure leadership continuity.
However, governance watchdogs have criticized the deal for placing too much control in one person’s hands. The Norwegian fund echoed these sentiments, warning that “key-person risk” — the company’s heavy reliance on Musk — remains inadequately addressed.
This is not the first time the fund has taken a stand against Musk’s pay. It voted against his 2018 package worth $56 billion, which was later struck down by a Delaware court for procedural flaws. The current proposal, eight times larger, has revived concerns about Tesla’s board independence.
As the shareholder vote approaches, Norway’s position could influence other institutional investors. Analysts suggest that a strong “no” vote could pressure Tesla to revise the terms or explore alternative incentive structures.