Norway's sovereign wealth fund, a behemoth in the investment world with assets worth $1.9 trillion, has cast a decisive vote against Tesla CEO Elon Musk's proposed $1 trillion compensation package. This move marks the first time a major investor has taken a stance on this contentious issue. In a statement released on Tuesday, the fund acknowledged Musk's significant contributions to Tesla's success but expressed reservations about the sheer magnitude of the proposed reward. It raised concerns over the potential dilution of existing shareholders' stakes and the absence of adequate safeguards to mitigate risks associated with key personnel, such as Musk himself.
On Thursday, Tesla is set to convene its annual shareholder meeting, where the outcome of votes on several proposals, including Musk's compensation package, will be unveiled. Under the terms of the proposal, if Musk succeeds in elevating Tesla's market capitalization to $8.5 trillion within the next decade, he stands to gain an additional 12% stake in the company. This would translate to a reward valued at over $1 trillion, a figure that has sparked widespread debate and scrutiny.