A powerful coalition of investors and advisory groups is forming to block Elon Musk’s $1 trillion pay package. Norway’s sovereign wealth fund, a $17 billion investor, announced it will join advisory firms Glass Lewis and ISS in opposing the deal.
The Norwegian fund, Tesla’s seventh-largest shareholder, stated its concerns clearly: the award is too big, dilutes other shareholders, and represents an unmitigated “key person risk.”
This united front presents a serious challenge to the Tesla board’s recommendation. Chair Robyn Denholm has pleaded with shareholders, stating the vote is essential to retain the 54-year-old Musk and his “visionary” leadership.
The package itself is designed to make Musk the world’s first trillionaire, granting him shares that would raise his stake to over 25% if Tesla’s valuation hits $8.5 trillion.
This isn’t the first time this group has been in conflict. The Norwegian fund also opposed a $56 billion deal last year, which was later voided by a Delaware court. With major US pension funds also voting “no,” Thursday’s meeting will be a test of the board’s influence.