Even while calling him a “visionary,” one of Tesla’s largest investors says Elon Musk’s proposed $1 trillion pay package is too “concerning” to approve.
Norway’s sovereign wealth fund, which holds a $17 billion stake, confirmed it will vote “no” at the annual meeting. The fund praised the “significant value created under Mr. Musk’s visionary role” but said the “total size” of the new award was a step too far.
The fund also cited “dilution” and “key person risk” as key factors. This “key person risk” is the very thing the Tesla board is trying to mitigate, arguing that not paying Musk is the real risk, as it could lead to his departure.
This dispute comes as Tesla navigates a tough market. Sales have slumped in China and across much of Europe, and global deliveries fell 13% in the first half of the year.
The Norwegian fund joins a powerful opposition, including advisory giants Glass Lewis and ISS, and major US pension funds, in recommending shareholders reject the deal.