Norway’s sovereign wealth fund, one of Tesla’s most significant investors, is voting no on the plan to make Elon Musk the world’s first trillionaire. The fund will reject the $1 trillion pay package at Thursday’s shareholder meeting.
The fund, which holds a $17 billion stake, said the award’s “total size” is “concerning.” It also raised flags about the “dilution” of existing shares and the “key person risk” involved in the deal.
This move adds to a growing wave of opposition. Influential advisory firms Glass Lewis and ISS, which guide the votes of many large funds, have both recommended rejection. The largest public pension fund in theUS, CalPERS, has also come out against it.
Tesla’s board, led by chair Robyn Denholm, is making a counter-argument focused on retention. She has warned shareholders that the company risks losing “significant value” if Musk, who has hinted at his dissatisfaction, is not secured by this package.
The vote comes as Tesla’s sales are struggling. Global deliveries fell 13% in the first half of the year, and sales have dropped steeply in China and key European markets, making the massive payout a tough sell for many.
