Norway sovereign wealth fund rejects Elon Musk’s $1 trillion pay deal

Norway’s $2 trillion sovereign wealth fund says it will vote against Elon Musk’s trillion-dollar pay package Tesla’sAt this week’s annual shareholder meeting, there was a rebellion against management’s guidance and Musk’s threats to resign if the deal is rejected.

Norges Bank Investment Management (NBIM), which manages the fund – the largest of its kind in the world and a major shareholder of Tesla – said in a statement on Tuesday that it had voted against Musk’s compensation package as CEO of the automaker.

“While we appreciate the significant value created under Mr. Musk’s visionary role, we are concerned about the overall size of the award, its dilution, and the lack of mitigation of key person risk – consistent with our views on executive compensation,” NBIM said in a statement.

“We will continue to engage in constructive dialogue with Tesla on these and other issues,” the fund managers added.

Tesla shares were 2.4% lower in premarket trading.

Tesla’s Board of Directors is asking shareholders to approve a compensation plan that would give Musk nearly $1 trillion in stock and expand his voting powers at the company. The entire award will be conditional on Tesla reaching certain milestones within the next 10 years.