A major showdown is brewing for Tesla’s annual meeting, as Norway’s sovereign wealth fund announced it will lead a charge of major investors voting against Elon Musk’s $1 trillion compensation plan.
As Tesla’s seventh-largest shareholder, the fund’s “no” vote is a significant development. It joins a growing coalition of opposition that includes influential advisory firms Glass Lewis and ISS, as well as major pension funds like the California Public Employees’ Retirement System.
The fund’s rationale is clear: “We are concerned about the total size of the award, dilution and lack of mitigation of key person risk.” This comes despite what it calls Musk’s “visionary role” at the company.
The package on the table is staggering. It would reward Musk with shares increasing his stake to over 25% if Tesla’s valuation hits $8.5 trillion, potentially making him the world’s first trillionaire with a fortune over $2 trillion.
This high-stakes vote occurs while Tesla’s business faces challenges. Global deliveries have fallen, and sales have slumped in key markets across Europe and in China, making the timing of the massive pay proposal contentious for many investors.