Norway’s wealth fund vote is latest blow to Musk’s $1 trillion pay package

Core Viewpoint - Norway's sovereign wealth fund has voted against a Tesla proposal for a $1 trillion compensation package for CEO Elon Musk, citing concerns over the size of the award and associated risks [1][2]. Group 1: Fund's Position - The fund, managed by Norges Bank Investment Management (NBIM), holds a 1.14% stake in Tesla valued at approximately $11.7 billion [1]. - NBIM expressed appreciation for the value created under Musk's leadership but raised concerns about the total size of the compensation, potential dilution, and the lack of mitigation for key person risk [2]. - The fund aims to maintain constructive dialogue with Tesla regarding executive compensation and other issues [2]. Group 2: Proposal Challenges - Despite NBIM's rejection, it may not be sufficient to defeat the proposal, which is part of Tesla's ongoing efforts to secure shareholder approval for Musk's compensation package [2]. - Advisory groups such as ISS and Glass Lewis have also recommended voting against the proposed pay package, indicating broader concerns within the investment community [2]. Group 3: Musk's Perspective - Musk has argued that the compensation package is more about control than financial gain, emphasizing this point during Tesla's third-quarter earnings call [3]. - He has indicated a willingness to leave Tesla if the compensation package is not approved, highlighting the stakes involved for both him and the company [3].