Norway’s $2.1 trillion sovereign wealth fund said it will vote against Tesla CEO Elon Musk’s record-breaking $1 trillion pay package, citing concerns over its scale and potential shareholder dilution. The vote will be held at Tesla’s annual general meeting on November 6, where investors will decide the fate of the largest CEO compensation proposal ever made.
In a statement, Norges Bank Investment Management (NBIM), Tesla’s seventh-largest shareholder with a 1.12% stake worth $17 billion, acknowledged Musk’s visionary leadership but criticized the “total size of the award and lack of mitigation of key person risk.” The fund also plans to oppose two Tesla directors up for re-election and the company’s general stock compensation plan.
Tesla’s board, led by Chair Robyn Denholm, has strongly backed the proposal, warning Musk could leave if the deal is rejected. The package would deliver Musk up to $1 trillion in stock over a decade, conditional on Tesla reaching a market capitalization of $8.5 trillion — nearly six times its current value.
Proxy advisors ISS and Glass Lewis have also recommended voting against the plan, while major institutional investors such as BlackRock and Vanguard have yet to reveal their positions. Despite the backlash, analysts expect the proposal to pass due to strong support from retail shareholders and Musk’s own 13.5% voting power.
