Norway's Wealth Fund Opposes Musk’s Historic Compensation Package

Norway's sovereign fund announced its opposition to Tesla CEO Elon Musk's proposed compensation package worth up to $1 trillion. Major investors will vote on the plan on November 6, with some supporting and others opposing the deal, considered excessively large by critics.

Norway's sovereign wealth fund, noted as the largest globally, declared on Tuesday its decision to reject the ratification of Tesla CEO Elon Musk's proposed remuneration package. The package, potentially worth up to $1 trillion in shares, will be voted upon by investors at the upcoming annual general meeting on November 6, with critiques already labeling it excessive.

The Norwegian fund is the biggest external Tesla investor to announce its voting intention, opposing the package. Meanwhile, Baron Capital, the next significant investor, expressed support for Musk's compensation package earlier this week. However, major institutional investors such as BlackRock, Vanguard, and State Street are yet to reveal their plans.

Tesla's board advocates for shareholder approval of the plan, highlighting the potential risk of Musk exiting the company if the agreement is declined. Despite Musk's previous success, critics, including the Norwegian wealth fund, express concerns about the package's overall size, potential dilution, and key person risk.

(With inputs from agencies.)