Post by : Badri Ariffin

In an uncommon public rebuke, Norway’s $2 trillion sovereign wealth fund said it will oppose Elon Musk’s proposed $1 trillion compensation plan at Tesla’s upcoming shareholder meeting, directly challenging management’s proposal and Musk’s warning that he might resign if it fails.

Norges Bank Investment Management (NBIM), which manages the fund and holds about 1.14% of Tesla, reported casting a negative vote on the CEO’s remuneration package. NBIM cited the award’s extraordinary scale, the risk of diluting existing shareholders and the concentration of corporate risk in a single individual. The fund’s Tesla stake was valued at approximately $11.6 billion in June.

Tesla’s board is asking investors to approve a package that would deliver nearly $1 trillion in stock to Musk over the next decade if ambitious performance targets are met. The proposal also includes measures that would broaden Musk’s voting influence inside the company, prompting scrutiny from investors and governance experts.

The plan has drawn opposition from proxy advisers Institutional Shareholder Services (ISS) and Glass Lewis, both recommending a vote against it. Activist groups, including the Take Back Tesla coalition of unions and accountability organisations, have urged shareholders to reject what they describe as an excessive award.

Musk, currently estimated as the world’s richest person with a net worth near $504 billion, has rejected the criticism, labelling ISS and Glass Lewis as “corporate terrorists” and defending his pay by pointing to Tesla’s leading position in the auto market.

NBIM has a history of voting against Musk’s pay proposals. Last year it opposed the reinstatement of a previously rescinded $56 billion package, even though shareholders ultimately backed it. Tensions between Musk and the Norwegian fund have occasionally become public, including direct appeals from Musk to NBIM executives over past compensation disputes.

The announcement weighed on market sentiment: Tesla shares fell about 2.5% in premarket trading as investors reacted to the controversy.

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