A major investor confrontation is unfolding ahead of Tesla’s annual shareholder meeting as Norway’s sovereign wealth fund announced it will vote against Elon Musk’s proposed $1 trillion pay package. The decision adds to the growing list of dissenters challenging one of the largest compensation plans in corporate history.
The Norwegian fund, which manages assets from the country’s oil revenues, said it respected Musk’s leadership but could not support the package’s “unprecedented scale and insufficient safeguards.” It cited dilution risks and concerns over Tesla’s dependence on its CEO.
Under the plan, Musk would receive substantial share awards if Tesla’s valuation jumps to $8.5 trillion within the next decade — a goal the company’s board calls “ambitious but achievable.” If met, the payout would boost Musk’s ownership stake from 16% to over 25%.
Tesla’s board has argued the deal aligns Musk’s incentives with shareholder interests and is critical to retain him amid rising competition in the EV sector. “Elon’s vision and drive have made Tesla what it is today,” said chair Robyn Denholm. “We cannot risk losing him.”
Yet major proxy advisers Glass Lewis and ISS disagree, calling the proposal “misaligned with performance and shareholder value.” Their reports highlighted Tesla’s slowing sales and growing market challenges in the U.S., Europe, and China.
In Norway, the wealth fund’s stance reflects a broader push among institutional investors for tighter oversight of executive pay. The fund has frequently challenged outsized CEO awards, arguing that responsible pay practices contribute to long-term financial stability.
The shareholder vote could shape not only Tesla’s future but also the wider debate over how much corporate leaders should be rewarded for growth that is already priced into market expectations. Analysts say a rejection could force Tesla to revisit the terms and governance of its incentive programs.