Norway Fund Opposes Elon Musk’s $1T Tesla Pay Plan

In a rare display of dissent, Norway’s $2 trillion sovereign wealth fund has announced it will vote against Elon Musk’s proposed $1 trillion pay package at Tesla’s upcoming annual shareholder meeting. The move challenges management guidance and Musk’s threat to step down if the proposal is rejected.

Norges Bank Investment Management (NBIM), which manages the fund and holds a 1.14% stake in Tesla, said it cast its vote against the CEO’s remuneration plan, citing concerns over the sheer size of the award, potential shareholder dilution, and the concentration of risk around a single executive. The fund’s Tesla holdings were valued at roughly $11.6 billion as of June.

Tesla’s Board of Directors is seeking shareholder approval for a plan that would grant Musk nearly $1 trillion in stock over the next decade, contingent on achieving specific performance milestones. The proposal also aims to expand Musk’s voting powers within the company, a move that has sparked debate among investors and corporate watchdogs.

The compensation package has drawn criticism from multiple quarters. Proxy advisory firms Institutional Shareholder Services (ISS) and Glass Lewis have recommended voting against it. Additionally, the Take Back Tesla campaign, a coalition of unions and corporate accountability groups, urged shareholders to reject the plan, calling it excessive.

Musk, who holds the title of the world’s wealthiest person with an estimated net worth of $504 billion, has pushed back against these criticisms. He dismissed ISS and Glass Lewis as “corporate terrorists” and defended his compensation by highlighting Tesla’s market dominance over other automotive companies.

This is not the first time NBIM has opposed Musk’s pay. Last year, it voted against reinstating a $56 billion compensation package that had been rescinded by a U.S. judge, although shareholders ultimately approved the plan. The tension between Musk and NBIM has occasionally spilled into public view, with past exchanges revealing Musk’s personal appeals to NBIM executives over pay disagreements.

Tesla shares reacted to the news with a 2.5% decline in premarket trading, reflecting investor uncertainty over the controversial compensation plan.