Norway’s sovereign wealth fund has outlined three core reasons for rejecting Elon Musk’s $1 trillion pay package: its “total size,” the “dilution” of other shareholders, and the “key person risk.”
The fund, a top-seven investor with a $17 billion stake, announced its “no” vote ahead of the crucial shareholder meeting on Thursday.
This decision puts the fund in direct conflict with Tesla’s board. Chair Robyn Denholm has argued the real risk is losing Musk, who she says is essential to the company’s value. The board sees the $1 trillion deal as the price of retention.
The package would make Musk the world’s first trillionaire, boosting his stake to over 25% if Tesla hits an $8.5 trillion valuation.
The Norwegian fund is not alone. Its “no” vote aligns with recommendations from the two most powerful advisory firms, Glass Lewis and ISS, and other major investors like the California Public Employees’ Retirement System (CalPERS).