Why Elon Musk's $1 trillion pay package got a 'no' from Norway.
By Steve Goldstein
Norway's sovereign wealth fund will vote against Elon Musk's $1 trillion compensation plan.
Norway's sovereign wealth fund, one of the biggest investors in Tesla, is opposing a plan to award Elon Musk up to $1 trillion in pay. But historically, the fund has not been a bellwether on key Tesla votes.
Tesla shareholders meet on Thursday to vote on the controversial package, which would award Musk billions of dollars even if the company misses key targets.
"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 - consistent with our views on executive compensation," said the Norges Bank Investment Management statement. "We will continue to seek constructive dialogue with Tesla on this and other topics."
According to FactSet, the wealth fund ranks as the sixth largest investor in Tesla.
Two proxy advisers, Glass Lewis and ISS, have recommended Tesla shareholders vote against the pay proposal.
That said, the Norwegian fund has voted against pay awards for Musk before - last year, for example, voting against the $56 billion plan that received 72% support from shareholders. Musk personally took umbrage, cancelling plans to attend a dinner with the fund's CEO Nicolai Tangen.
Baron Capital, another big investor in Tesla, on Monday took the opposite stance on the new pay package, saying it will vote in favor.
"The plan ensures that shareholders win first, and that Elon Musk continues to lead Tesla for many years to come. We commend the Board for recognizing this and for working to retain Tesla's most valuable asset. We believe the 2025 CEO Performance Award is right for the company, right for shareholders and right for the future," said the firm, whose Partners Fund BPTUX ranks as the fifteenth largest mutual fund holder of Tesla.
Tesla stock (TSLA) fell 3% in premarket trade. The stock has gained 16% this year.
-Steve Goldstein
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11-04-25 0850ET
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