Norway's Wealth Manager Opposes Elon Musk

The sovereign wealth fund of Norway has expressed its concerns regarding the $1 trillion payment package proposed by Elon Musk. In a statement from Norges Bank Investment Management, issues such as the size of the proposal, the risk of share dilution, and key person dependency were highlighted.

This voting is creating pressure ahead of a shareholder meeting scheduled for November 6, 2025. Investors will decide on the performance-based plan. Tesla shares dropped approximately 3% in pre-market trading as the debate over the compensation intensified.

Norges Bank voiced its concerns about the total size of the proposal, potential dilution, and the lack of measures to mitigate key person risk. The institution holds about 1.2% of the shares. Additionally, major investors such as Vanguard and BlackRock are also among the influential shareholders to watch.

It is noted that many public pension funds and advisory firms are opposing the proposal. The American Federation of Teachers, New York City retirement systems, Corporate Governance Services, and Glass Lewis have expressed concerns regarding management and dilution. However, some, such as Baron Capital and the Florida State Board of Administration, argue that it is an incentive package to achieve high growth targets.

Musk's control of approximately 15% of the voting power and the proposals being tied to performance and market value are initiating a voting process for investors to determine whether they value Musk's leadership more than the management risks.