Financial and Business News

Musk’s $1 Trillion Tesla Reward Meets Resistance from Norway’s Sovereign Fund

Tuesday, 04/11/2025 | 12:15 GMT by Tareq Sikder
  • Tesla board warns Musk may leave if pay plan fails.
  • Baron Capital backs plan; investors including BlackRock, Vanguard, and State Street remain undecided.
Elon Musk
Britta Pedersen-Pool/Getty Images

Norway’s $2.1 trillion sovereign wealth fund said it will vote against Tesla CEO Elon Musk’s proposed compensation plan ahead of the company’s November 6 meeting.

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The package could grant Musk shares worth up to $1 trillion over ten years, making it one of the largest in corporate history.

Norges Bank Votes Against Tesla Compensation

Norges Bank Investment Management, Tesla’s seventh-largest shareholder with a 1.12% stake worth about $17 billion, said it values Musk’s contribution but is concerned about “the total size of the award, dilution, and lack of mitigation of key person risk.”

The fund will also vote against two Tesla board members – Kathleen Wilson-Thompson and Ira Ehrenpreis – and oppose the company’s general stock compensation plan.

Major Investors Hesitate on Musk Package

Tesla’s board has urged shareholders to back the deal, warning that Musk might leave if it is rejected. Critics, however, argue the plan remains excessive even after deducting the share costs, which bring the net potential value to about $878 billion.

According to Reuters, major investors like BlackRock and Vanguard have not revealed their votes, while Baron Capital said it will support the plan. Musk’s earlier $56 billion package, approved in 2018, is still under legal review.

Shareholders to Decide Tesla’s Future

The plan requires Musk to meet ambitious performance targets, including growing vehicle sales, producing autonomous robotaxis, and reaching an $8.5 trillion market value.

Proxy advisory firms ISS and Glass Lewis recommend voting against it, citing its size and Musk’s influence over the board. Critics also point to broader challenges, including aging car models, Chinese competition, and expiring U.S. EV tax credits.

If approved and fully achieved, Musk could become the world’s first trillionaire. The shareholder vote will determine both his future at Tesla and the company’s direction in AI, robotics, and electric vehicles.

Norway’s $2.1 trillion sovereign wealth fund said it will vote against Tesla CEO Elon Musk’s proposed compensation plan ahead of the company’s November 6 meeting.

Join IG, CMC, and Robinhood at London’s leading trading industry event!

The package could grant Musk shares worth up to $1 trillion over ten years, making it one of the largest in corporate history.

Norges Bank Votes Against Tesla Compensation

Norges Bank Investment Management, Tesla’s seventh-largest shareholder with a 1.12% stake worth about $17 billion, said it values Musk’s contribution but is concerned about “the total size of the award, dilution, and lack of mitigation of key person risk.”

The fund will also vote against two Tesla board members – Kathleen Wilson-Thompson and Ira Ehrenpreis – and oppose the company’s general stock compensation plan.

Major Investors Hesitate on Musk Package

Tesla’s board has urged shareholders to back the deal, warning that Musk might leave if it is rejected. Critics, however, argue the plan remains excessive even after deducting the share costs, which bring the net potential value to about $878 billion.

According to Reuters, major investors like BlackRock and Vanguard have not revealed their votes, while Baron Capital said it will support the plan. Musk’s earlier $56 billion package, approved in 2018, is still under legal review.

Shareholders to Decide Tesla’s Future

The plan requires Musk to meet ambitious performance targets, including growing vehicle sales, producing autonomous robotaxis, and reaching an $8.5 trillion market value.

Proxy advisory firms ISS and Glass Lewis recommend voting against it, citing its size and Musk’s influence over the board. Critics also point to broader challenges, including aging car models, Chinese competition, and expiring U.S. EV tax credits.

If approved and fully achieved, Musk could become the world’s first trillionaire. The shareholder vote will determine both his future at Tesla and the company’s direction in AI, robotics, and electric vehicles.

Topics
retail
tesla
elon musk
About the Author: Tareq Sikder
Tareq Sikder
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A Forex technical analyst and writer who has been engaged in financial writing for 12 years.

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