“Total Size of the Award”: Norway Fund Rejects $1T Musk Package

Citing the “total size of the award,” Norway’s sovereign wealth fund has officially rejected Elon Musk’s $1 trillion pay proposal, adding a powerful voice to the opposition.
The fund, Tesla’s seventh-largest shareholder with a $17 billion stake, said the package was “concerning.” Beyond its size, the fund also noted the “dilution” of other shareholders’ equity and the “lack of mitigation of key person risk.”
This is a repeat performance for the fund, which also voted against Musk’s $56 billion package last year. That deal was approved by shareholders but later invalidated by a Delaware court, prompting this new vote.
The board’s argument for the deal is centered on retention. Chair Robyn Denholm claims Tesla risks losing “significant value” if Musk, who has mused about his role, is not locked in with this incentive.
The fund’s “no” vote aligns it with advisory firms Glass Lewis and ISS, as well as the California Public Employees’ Retirement System, setting the stage for a tense shareholder meeting on Thursday.