Norwegian Wealth Fund Opposes Musk's Massive Pay Package

In a noteworthy development, Norway's sovereign wealth fund, the world's largest, has announced its intent to vote against Tesla CEO Elon Musk's proposed compensation package, estimated to be worth up to $1 trillion. This decision will be deliberated at Tesla's annual general meeting on November 6.

Critics have labeled the compensation package as excessive. Proxy advisers ISS and Glass Lewis have urged shareholders to reject it, citing concerns over its size and its potential to dilute holdings for other investors. Despite opposition, the package is likely to pass, thanks to broad investor support and recent changes in Texas law allowing Musk to leverage his stake.

While acknowledging Musk’s role in value creation, Norges Bank Investment Management expressed concerns over the award's enormity and risks involved. The fund will also vote against certain Tesla directors up for reelection, continuing its critical stance on Musk's compensation plans.