Norway's $2 trillion sovereign wealth fund, one of Tesla's largest investors, has announced that it will vote against Elon Musk's proposed $1 trillion pay package, creating tension ahead of Tesla's upcoming shareholder meeting.
The fund, managed by Norges Bank Investment Management (NBIM), said Tuesday that it had already cast its vote opposing the massive compensation plan.
The decision comes despite NBIM praising Musk's leadership and vision for Tesla's growth.
"While we appreciate the significant value created under Mr. Musk's visionary role, we are concerned about the total size of the award, dilution, and lack of mitigation of key person risk," NBIM said in a statement, Reuters reported.
"We will continue to seek constructive dialogue with Tesla on this and other topics."
NBIM currently owns a 1.14% stake in Tesla—worth roughly $11.6 billion—and is known for its strict approach to executive pay and corporate governance.
Its opposition carries weight in the global investment community, especially among European funds that follow similar environmental, social, and governance (ESG) principles.
🚨 JUST IN: 🇳🇴 Norway’s $1.6 trillion sovereign wealth fund — the world’s largest — will vote against Elon Musk’s $1 trillion pay package, according to the Financial Times.
— Markri (@markry99) November 4, 2025
One of Tesla’s biggest investors just said no. ⚡️ pic.twitter.com/F4SAHl0IX4
Tesla Board Seeks Shareholder Approval for Musk's $1T Pay
Tesla's board is urging shareholders to approve the new pay package, which could grant Musk nearly $1 trillion in stock options over 10 years if Tesla reaches certain performance targets.
The company's chair, Robyn Denholm, warned that Musk might consider stepping down if the plan is rejected.
The proposed package has divided investors. Proxy advisory firms Institutional Shareholder Services (ISS) and Glass Lewis both recommended voting against it, citing concerns over its size and potential dilution of existing shareholders.
Meanwhile, other investors, including Schwab Asset Management and Baron Capital, said they plan to support the plan, arguing it aligns Musk's goals with those of shareholders.
According to CNBC, Musk has pushed back against critics, calling ISS and Glass Lewis "corporate terrorists."
On X, he defended the proposal, writing, "Tesla is worth more than all other automotive companies combined. Which of those CEOs would you like to run Tesla? It won't be me."
This isn't the first time Norway's wealth fund has clashed with Tesla over Musk's pay.
Last year, NBIM voted against reinstating a previous $56 billion compensation plan, the largest in US corporate history, before it was eventually approved by Tesla shareholders.
Originally published on vcpost.com
