Tesla's Pay Package Clash: Norway's Sovereign Wealth Fund Stakes a Stand

Norway's sovereign wealth fund, Tesla's significant investor, plans to vote against Elon Musk's proposed $1 trillion pay deal, citing concerns over its size and dilution. The fund's decision adds uncertainty ahead of shareholders' meeting, despite Tesla's board pushing for approval and significant backing from large institutional investors.

In a significant move, Norway's sovereign wealth fund, one of Tesla's major investors, has announced its opposition to Elon Musk's $1 trillion pay package proposal. The fund cited concerns over the deal's magnitude and the potential for dilution, adding an element of unpredictability to the upcoming shareholders' meeting.

The debate has drawn attention to the differing views on corporate governance, with Tesla's board warning that rejection could lead to Musk leaving the company. The fund, along with other European entities, underscores a rising focus on ESG principles, potentially influencing further investor decisions.

Despite this, key investors like Schwab Asset Management back Musk's compensation, believing it aligns managerial and shareholder interests. As Tesla's largest investors remain silent on their intentions, the outcome of the vote could reveal underlying tensions within the investor community.

(With inputs from agencies.)