Norway sovereign wealth fund rejects Elon Musk’s $1 trillion pay deal

Norway’s $2 trillion sovereign wealth fund announced its decision to vote against Elon Musk’s trillion-dollar pay package at Tesla’s annual shareholder meeting. The fund, a major shareholder in Tesla, expressed concerns about the size of the award and lack of mitigation of key person risk. The fund’s managers stated that they will continue seeking constructive dialogue with Tesla on this issue.

The Norwegian wealth fund holds a 1.14% stake in Tesla, valued at 118.3 billion Norwegian kroner ($11.6 billion).

Tesla shares saw a 2.5% decline in premarket trade as the Board of Directors proposed a pay plan for Musk that could potentially grant him almost $1 trillion in stock. The plan includes certain milestones that Tesla must achieve over the next decade.

The proposed compensation package has faced opposition from various quarters, including the Take Back Tesla campaign and proxy advisories ISS and Glass Lewis. Musk, in response to critics, defended the plan by highlighting Tesla’s value compared to other automotive companies.

Previous clashes over Musk’s pay with NBIM were also highlighted, including a past vote against reinstating his pay deal.

Musk, the world’s wealthiest individual according to Forbes, has not yet commented on NBIM’s latest vote against his proposed CEO compensation package.