Norway’s sovereign wealth fund has joined a growing chorus of institutional investors opposing Tesla’s record-breaking $1 trillion compensation plan for Elon Musk. The fund, one of Tesla’s largest shareholders, said it would vote against the proposal due to concerns about dilution and governance.
In its statement, the fund acknowledged Musk’s remarkable contributions to Tesla but said the proposal was inconsistent with its guidelines for responsible executive pay. It emphasized that “the magnitude of the award and concentration of power present significant risks for shareholders.”
Tesla’s proposed package would grant Musk additional stock options tied to achieving an $8.5 trillion valuation over the next decade. Such growth would dramatically increase Musk’s stake in the company while potentially cementing his position as the world’s first trillionaire.
Tesla’s board has defended the proposal, arguing that Musk’s leadership remains indispensable. Chair Robyn Denholm said losing Musk could “erase substantial value” for shareholders, describing the incentive as crucial for retention and motivation.
However, the opposition from major investors like Norway’s fund and from advisory groups such as ISS and Glass Lewis adds to mounting skepticism. They contend that the plan rewards Musk excessively at a time when Tesla’s global sales are faltering and profit margins are tightening.
Industry data shows that Tesla’s car sales in Europe dropped sharply in recent months, while shipments from its Shanghai factory declined by about 10% year-on-year in October. These results have raised doubts about whether Tesla can meet the ambitious targets required to justify Musk’s payout.
As one of the largest investors in the world, Norway’s fund wields considerable influence in corporate governance debates. Its rejection of Tesla’s plan could set a precedent for how global institutions assess executive pay in high-growth tech firms.