In a clear message to Elon Musk, Norway’s sovereign wealth fund has acknowledged the “significant value” he has created but has drawn a line at his $1 trillion pay package.
The fund, Tesla’s seventh-largest shareholder, will vote “no” at the upcoming meeting. It stated its opposition is rooted in concerns over the “total size of the award,” share “dilution,” and “key person risk.”
This decision is consistent with the fund’s past actions. It also opposed Musk’s $56 billion package, a move that led to a personal spat. Musk declined a dinner invitation from the fund’s CEO, Nicolai Tangen, after the “no” vote, texting, “Friends are as friends do.”
The new $1 trillion proposal, which could see Musk’s wealth surpass $2 trillion, is also facing rejection from advisory firms ISS and Glass Lewis.
Tesla’s chair, Robyn Denholm, has defended the package as essential to retain the 54-year-old CEO. However, the growing opposition from major investors presents a serious challenge to the board’s plans.