Elon Musk’s proposed $1 trillion compensation package has deeply divided Tesla shareholders, with one of the largest and most influential, Norway’s sovereign wealth fund, officially coming out against it.
The fund, which holds a $17 billion stake, announced it will vote “no” at the upcoming annual meeting. It cited the “total size of the award” and “lack of mitigation of key person risk” as its primary reasons.
This sets up a major conflict. On one side, Tesla’s board, led by chair Robyn Denholm, insists the package is essential to retain Musk and prevent a “significant value” loss. On the other, a growing bloc of institutional investors is raising alarms.
This opposition now includes the Norwegian fund, the California Public Employees’ Retirement System (CalPERS), and the American Federation of Teachers. Furthermore, two key advisory firms, Glass Lewis and ISS, have both recommended that all shareholders reject the proposal.
The vote comes as Tesla navigates a tough market. The company faces declining sales in China and much of Europe, and global deliveries fell 13% in the first half of the year, making the timing of the record-breaking pay deal all the more controversial.
