Norway's Wealth Fund Challenges Elon Musk's $1 Trillion Compensation

Norway's sovereign wealth fund opposes Tesla CEO Elon Musk's proposed $1 trillion compensation package due to concerns over its size and potential dilution. The fund, which holds a significant Tesla stake, will vote against the plan, warning of key person risk if Musk departs as a result.

Norway's sovereign wealth fund, the largest globally, announced on Tuesday its intention to vote against Tesla CEO Elon Musk's proposed $1 trillion compensation package at the upcoming annual general meeting. The fund's decision stems from concerns over the package's size and potential stock dilution.

Investors are set to decide on November 6 whether to approve this unprecedented compensation, which Norway's fund, Tesla's seventh-biggest owner, criticizes for lacking sufficient risk mitigation strategies regarding Musk's potential departure. Despite supportive pushes from Tesla's board, the package's approval remains uncertain.

The Norwegian fund also plans to oppose Tesla's general stock compensation and two director re-elections. Though Musk's earnings are tied to Tesla's market cap milestones, experts argue he could still amass significant wealth even if certain targets aren't reached.

(With inputs from agencies.)