Norwegian Fund's Strong Response to Elon Musk

Norway's $2 trillion sovereign wealth fund announced that it would vote against Elon Musk's proposed trillion-dollar compensation package for Tesla. This decision has sparked significant debate at Tesla's upcoming annual shareholder meeting.

In the past, Musk has stated that he would resign if the contract were rejected. However, Norges Bank Investment Management (NBIM), as a significant shareholder of Tesla, announced that it rejected the CEO's proposed compensation package.

NBIM stated, “While we appreciate the substantial value created under Mr. Musk's visionary leadership, we are concerned about the total scale of the award, the dilution, and the lack of mitigation of key person risk; our views are consistent with executive compensation.”

Fund managers indicated that they intend to maintain a constructive dialogue with Tesla on these and other issues. Following the news, Tesla shares fell by 2.5% in pre-market trading.

The decision of the Norwegian fund stands out as a sign of a significant shareholder uprising ahead of the upcoming meeting.