Tesla Shareholders Close to Deciding on Musk's $1 Trillion Pay Package

Core Points - The ongoing engagement with Tesla's special committee regarding the proposed compensation plan is emphasized, indicating active discussions and involvement [1][2] - The main concern raised by Norway's sovereign wealth fund, Tesla's ninth largest shareholder, is the perceived excessive size of the proposed pay package and potential dilution of shares [4][5] - The importance of ensuring shareholders are well-informed about the compensation plan, distinguishing it from the assessments made by proxy advisers [3][4] Shareholder Concerns - Norway's sovereign wealth fund has opposed the pay plan, citing concerns over dilution and the overall size of the award despite acknowledging the value created by Elon Musk [4][5] - The fund has been a Tesla shareholder since 2011 and has seen a significant increase in share value, raising questions about their current stance [6][7] Voting Dynamics - The current voting process under Texas law allows insiders, including Elon Musk, to vote their shares, which differs from previous Delaware law [13][14] - Historical context shows that previous compensation plans received over 70% shareholder approval without including Musk's votes, suggesting potential for strong support in the current vote [14][15] Risk Management - There is a recognition of the risk that a negative vote could lead to Elon Musk reducing his involvement with Tesla, but the focus remains on securing a positive outcome [10][12] - The board is confident in their strategy and is not currently considering alternative plans, emphasizing a strong belief in winning shareholder support [11][12]