"The bank behind the world's largest sovereign wealth fund has just dealt a blow to Elon Musk's $1 trillion payday. Norges Bank Investment Management, which manages Norway's $2 trillion sovereign wealth fund, said on Tuesday it had voted against the Tesla CEO's proposed pay package ahead of the company's annual shareholder meeting on Thursday. The bank said that while it appreciated the "significant value" created under the billionaire's leadership, it had concerns about the size of the package, dilution, and the lack of mitigation of Musk's "key person risk" for Tesla."
"The fund, which is Tesla's sixth-largest institutional investor, also voted against Musk's previous pay package in 2024. In January, leaked messages revealed an icy text exchange between the Tesla boss and Norges' CEO Nicolai Tangen, with the billionaire telling Tangen that "friends are as friends do." Norway's sovereign wealth fund is the largest institutional investor to publicly say how it has voted on the $1 trillion pay package. The fund has a 1.2% share in the EV giant."
"Tesla's CEO compensation plan has come under fire from some investors, including the California Public Employees Retirement System (CalPERS) and the New York State Retirement Fund. Proxy firms Glass Lewis and ISS have also urged shareholders to vote against it, prompting Musk to label them "corporate terrorists" in a recent earnings call. Several other big investors, including Florida's State Board of Administration and ARK Invest's Cathy Wood, have expressed support. Vanguard and BlackRock, Tesla's two largest institutional shareholders, have not yet said how they are voting."
Norges Bank Investment Management, which manages Norway's $2 trillion sovereign wealth fund, voted against Elon Musk's proposed $1 trillion Tesla pay package ahead of the company's annual shareholder meeting. The fund cited concerns about the overall size of the package, shareholder dilution, and the absence of measures to reduce Musk's key-person risk for Tesla. The fund, holding a 1.2% stake and ranking as Tesla's sixth-largest institutional investor, had also opposed Musk's 2024 package. Several institutional investors and proxy advisers urged votes against the plan while others backed it; major shareholders Vanguard and BlackRock had not disclosed their positions.
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