Controversy Over Elon Musk's Trillion-Dollar Compensation Proposal

Norway's sovereign wealth fund, a significant stakeholder in Tesla, announced its opposition to a proposed compensation package for CEO Elon Musk that could total USD 1 trillion over 10 years. This comes amid a series of company proposals that have sparked debate ahead of Tesla's annual meeting.

The compensation plan, which would grant Musk shares equivalent to 12 per cent of Tesla if ambitious goals are met, has divided investors. While some, like Baron Capital Management, endorse the plan due to Musk's transformative impact, others are wary of its magnitude and associated risks.

Norges Bank Investment Management, which controls a substantial stake in Tesla, highlighted concerns about the package's size, potential shareholder dilution, and the lack of measures to address key person risk, underscoring the need for ongoing dialogue with Tesla's management.