Norway’s Wealth Fund Opposes Musk’s $1T Tesla Pay Deal

Norway’s Norges Bank Investment Management (NBIM) — the world’s largest sovereign wealth fund — announced Tuesday that it voted against Elon Musk’s $1 trillion compensation package ahead of Tesla’s annual shareholder meeting scheduled for Thursday.

The fund holds a 1.2% stake in Tesla (TSLA), making it the company’s sixth-largest institutional investor, according to FactSet. It is also the first major investor to publicly disclose its voting stance on Musk’s pay plan.

NBIM’s Concerns

NBIM said its decision reflects long-standing views on corporate governance and executive pay:

“While we appreciate the significant value created under Mr. Musk’s visionary role, we are concerned about the total size of the award, dilution, and lack of mitigation of key person risk,” the fund stated.
The statement highlights the potential overreliance on Musk and dilutive impact of such a large equity-based compensation plan.

Tesla’s Response and Market Reaction

Tesla’s board has defended the package, calling it crucial for retaining Musk and aligning his incentives with shareholders’ long-term value creation.

Despite the board’s stance, Tesla shares slipped nearly 3% in premarket trading, following the fund’s announcement and a broader pullback in equities, especially AI-related stocks.

Prediction markets, however, expect shareholders to approve the pay package, reflecting continued investor confidence in Musk’s leadership.