Norway’s $2 trillion sovereign wealth fund said Tuesday it has voted against Elon Musk’s massive pay package at Tesla, breaking with company leaders as Musk warns he may step aside if shareholders reject the proposal.
Norges Bank Investment Management, one of Tesla’s largest investors with a 1.14 percent stake, said it opposed the compensation plan because of its scale, the potential dilution of shares and concerns over the company’s reliance on Musk.
“While we appreciate the significant value created under Mr. Musk’s visionary role, we are concerned about the total size of the award and the lack of mitigation of key person risk,” the fund said.
Tesla’s board is asking investors to approve a plan that could grant Musk stock worth nearly $1 trillion over the next decade if the company hits ambitious targets. The proposal has triggered strong pushback from unions, shareholder groups and two major proxy advisers, ISS and Glass Lewis.
Musk has dismissed that criticism, calling the advisory firms “corporate terrorists” and warning that Tesla would struggle without him. Shares fell about 2.5 percent in premarket trading following Norway’s announcement.
This is not the first time NBIM has opposed Musk’s pay. The fund voted against his earlier $56 billion package last year before Tesla shareholders reinstated it.
Musk, who has publicly sparred with NBIM leaders in the past, has not commented on the latest vote. He remains the world’s richest person with an estimated net worth of more than $500 billion.
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