Norway's Wealth Fund Challenges Musk's Massive Pay Deal Amid Investor Scrutiny

Norway's sovereign wealth fund voices opposition to Tesla CEO Elon Musk's proposed pay deal potentially worth $1 trillion, with the fund planning to vote against the deal. Concerns revolve around corporate governance, compensation size, and Musk's influential voting power. The outcome may sway European investors and affect board re-elections.

Norway's sovereign wealth fund, one of Tesla's significant outside investors, announced its intention to vote against a proposed pay arrangement for CEO Elon Musk, which could be valued at a staggering $1 trillion. The fund's opposition introduces uncertainty in upcoming shareholder voting, highlighting concerns about executive compensation size and corporate governance.

Tesla's board is advocating for the approval of Musk's compensation plan, warning that the CEO might leave the company if it doesn't pass. Despite Tesla's previous success in garnering investor support, this move by Norges Bank Investment Management could influence other European investors concerned with ESG principles.

While major U.S. investors remain non-committal prior to the meeting, consultancy groups suggest that unpredictability surrounds this high-stakes vote. Other European investors have yet to reveal their voting intentions, amplifying suspense over the ballot outcome set for Thursday.

(With inputs from agencies.)