All eyes are on Tesla’s annual shareholder meeting this Thursday, which is shaping up to be a battlefield over Elon Musk’s proposed $1 trillion pay package.
A formidable opponent has entered the ring: Norway’s massive sovereign wealth fund. As the automaker’s seventh-biggest shareholder, its decision to vote “no” carries significant weight.
The fund’s reasoning is clear: the deal is simply too big, dilutes other shareholders, and creates too much “key person risk.” They join advisory giants ISS and Glass Lewis, who are also urging rejection.
This is history repeating itself. The Norwegian fund and a Delaware court previously rejected a $56 billion package for Musk. That conflict led to a personal spat, with Musk texting the fund’s CEO that “Friends are as friends do” after his vote.
With Tesla’s sales slumping in China and Europe, the board argues it must pay to keep its “visionary” CEO. But shareholders, including the largest US public pension fund, are increasingly questioning the price of loyalty.