Norway’s $1.9 trillion sovereign wealth fund said it will vote against Tesla CEO Elon Musk’s proposed $1 trillion compensation package, citing its size and governance concerns.
Norges Bank Investment Management (NBIM), which holds a 1.14% stake in Tesla, said it had already voted against the plan ahead of this week’s shareholder meeting. “We are concerned about the total size of the award, dilution, and lack of mitigation of key person risk,” NBIM said.
Tesla’s board is seeking approval for a pay plan that could grant Musk nearly $1 trillion in stock over ten years if performance targets are met. The proposal has faced opposition from investor groups and proxy advisers ISS and Glass Lewis.
Musk has criticized those opposing the plan and hinted he could step down if it fails. NBIM also voted against Musk’s $56 billion package last year, which shareholders later approved.
Tesla shares were down 2.5% in premarket trading.
