History is repeating itself as Norway’s sovereign wealth fund once again moves to reject a massive payday for Elon Musk. After voting against his $56 billion package last year, the fund has now confirmed it will oppose the new, even larger $1 trillion proposal.
The fund, Tesla’s seventh-biggest shareholder, holds a $17 billion stake. It stated that its opposition is “consistent with our views on executive compensation,” highlighting concerns about the “total size” and the dilution of other investors’ shares.
The previous “no” vote from the fund led to a tense exchange. When the fund’s CEO invited Musk to dinner, Musk declined, reportedly texting that since the fund had rejected his “rare” request for a favor (the pay vote), it should not ask him for one.
This new $1 trillion package, which would make Musk the first trillionaire if Tesla’s value hits $8.5 trillion, faces significant opposition. Influential advisory firms Glass Lewis and ISS are also recommending rejection.
Tesla’s board is making an urgent plea for approval, with chair Robyn Denholm warning that Musk’s leadership is not guaranteed without it. This comes as the company navigates falling sales in Europe and China.