Norway's Sovereign Wealth Fund Will Vote Against Tesla's $1 Trillion Pay Proposal For Musk

Core Viewpoint - Norway's sovereign wealth fund, a significant shareholder in Tesla, will vote against the proposed $1 trillion compensation package for CEO Elon Musk, reflecting growing investor concerns over executive pay structures [1][2]. Group 1: Voting Plans and Concerns - Norges Bank Investment Management, which manages Norway's Government Pension Fund Global, plans to vote against Musk's "CEO Performance Award" at Tesla's annual shareholder meeting [2]. - The fund expressed appreciation for the value created under Musk's leadership but raised concerns about the total size of the award and its alignment with their views on executive compensation [2]. - The fund highlighted that the proposed compensation does not address "key person risk," indicating a potential over-reliance on Musk [2]. Group 2: Fund's Stake in Tesla - The Norwegian Government Pension Fund Global holds a 1.14% stake in Tesla, valued at approximately $11.7 billion as of June [4]. - This is not the first instance of the fund opposing Musk's compensation; it previously voted against a $56 billion pay award in 2024, citing similar concerns regarding the size and structure of the award [4]. - The fund's management reiterated its consistent stance against large compensation packages, emphasizing concerns over performance triggers, dilution, and key person risk mitigation [4]. Group 3: Market Reaction - Following the announcement, Tesla's share price fell by approximately 2.61%, trading at $456.18 in premarket sessions [5].