Norway's Wealth Fund Opposes Musk's $1 Trillion Compensation Proposal

Norway's sovereign wealth fund, the world's largest, has declared its intention to vote against Tesla CEO Elon Musk's proposed compensation package. Valued at up to $1 trillion, the package is deemed excessive by critics, and investors are set to make their decision on November 6.

The board of Tesla is urging shareholders to ratify the plan, with Chair Robyn Denholm warning that Musk may leave the company if the deal isn't approved. Although the package might grant stock valued up to $1 trillion over a decade, deductions at the award time reduce its value to Musk to around $878 billion, highlights a Reuters analysis.

Norway's wealth fund expressed concerns about the award's size, potential dilution, and the absence of a key person risk mitigation strategy. 'While we acknowledge Mr. Musk's significant contributions, these factors are crucial in our executive compensation stance,' stated Norges Bank Investment Management on its website.