Tesla’s $2 trillion pay package faces opposition from Norway’s wealth fund

Investing.com -- Norway’s $2 trillion sovereign wealth fund announced Tuesday it will vote against Elon Musk’s trillion-dollar compensation package at Tesla’s upcoming annual shareholder meeting.

Musk had previously warned that he would step down from his position if the deal were rejected.

Norges Bank Investment Management (NBIM), which holds a significant stake in Tesla, confirmed it has already cast its vote rejecting the CEO’s proposed pay package.

"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- consistent with our views on executive compensation," NBIM stated.

The fund’s managers added they plan to "continue to seek constructive dialogue with Tesla on this and other topics."

Tesla shares fell 2.5% in premarket trading after the news.

The Norwegian fund’s decision represents a major shareholder rebellion against the massive compensation plan ahead of Tesla’s shareholder meeting this week.

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