World’s largest wealth fund rejects Musk’s $1tn payout

Core Viewpoint - Elon Musk's proposed pay deal, which is linked to ambitious performance targets, faces significant opposition from major shareholders, including Norges Bank Investment Management, which has voted against the deal due to concerns over its size and potential dilution of shares [1][2][3]. Group 1: Pay Deal Details - The proposed pay deal for Elon Musk includes a 12% stake in Tesla if he can increase the company's value to over $8.5 trillion within the next 10 years [2]. - Musk's compensation is contingent upon achieving ambitious goals, such as selling 20 million electric cars, one million AI robots, and launching over one million robotaxis in the next decade [3]. Group 2: Shareholder Opposition - Norges Bank Investment Management, which holds a 1.2% stake in Tesla, has expressed concerns about the total size of Musk's pay package and the lack of mitigation for key person risk [2]. - The proposal has also faced opposition from shareholder advisory firms like Glass Lewis and Institutional Shareholder Services (ISS), which have raised alarms about the extraordinary pay levels not being matched by exceptional performance [4]. Group 3: Musk's Response and Implications - In response to the opposition from proxy firms, Musk labeled them as "corporate terrorists" and suggested he might leave Tesla if the pay deal does not pass [5]. - Tesla's board chair, Robyn Denholm, indicated that the company risks losing Musk's leadership if shareholders reject the pay proposal [6].