Tesla CEO Elon Musk attends the Saudi-U.S. Funding Discussion board, in Riyadh, Saudi Arabia, Might 13, 2025.
Hamad I Mohammed | Reuters
Norway’s $2 trillion sovereign wealth fund mentioned it is going to vote towards Elon Musk’s trillion-dollar pay package deal at Tesla‘s annual shareholder assembly this week, rebelling towards administration steering and threats from Musk to step down if the deal is rejected.
Norges Financial institution Funding Administration (NBIM), which manages the fund — the most important of its type on the planet, and a serious shareholder in Tesla — mentioned on Tuesday that it had already solid its vote towards Musk’s remuneration package deal as CEO of the carmaker.
“Whereas we respect the numerous worth created beneath Mr. Musk’s visionary function, we’re involved concerning the complete dimension of the award, dilution, and lack of mitigation of key individual risk- in step with our views on government compensation,” NBIM mentioned in an announcement.
“We’ll proceed to hunt constructive dialogue with Tesla on this and different matters,” the fund’s managers added.
Norway’s wealth fund holds a 1.14% stake in Tesla, in line with its half-year filings in June. The worth of that funding was final declared to be 118.3 billion Norwegian kroner ($11.6 billion).
Tesla shares had been 2.5% decrease in premarket commerce.
Tesla’s Board of Administrators is asking shareholders to approve a pay plan for Musk that might see him granted virtually $1 trillion in inventory and broaden his voting powers on the firm. The total award could be contingent on Tesla hitting sure milestones over the following 10 years.
The proposals have raised eyebrows and been met with opposition from some firm watchers. Final month, the Take Again Tesla marketing campaign — a coalition of unions and company watchdogs — urged shareholders to reject the deal, whereas proxy advisories Institutional Shareholder Providers and Glass Lewis have additionally beneficial buyers vote towards the compensation package deal.
Musk has hit again at these suggestions, labeling ISS and Glass Lewis “company terrorists” on an analyst name.
“Tesla is value greater than all different automotive firms mixed,” Musk wrote in a publish on X final month in response to a critic of the pay proposal. “Which of these CEOs would you wish to run Tesla? It will not be me.”
Representatives for Musk and Tesla weren’t instantly obtainable to touch upon NBIM’s vote towards the proposed CEO compensation package deal.
Nonetheless, Musk has butted heads with NBIM over his pay up to now.
Final 12 months, NBIM voted towards reinstating Musk’s $56 billion pay deal after it was rescinded by a U.S. decide. The package deal — the most important public government compensation plan in U.S. historical past — was in the end accredited by Tesla’s shareholders.
Following the vote, the Monetary Occasions and Norwegian newspaper E24 printed textual content messages exchanged between Musk and NBIM Chief Govt Nicolai Tangen, which confirmed the Tesla CEO declining an invite to a dinner in Norwegian capital Oslo.
“After I ask you for a favor, which I very not often do, and also you decline, then you shouldn’t ask me for one till you’ve got executed one thing to make amends,” Musk reportedly wrote. “Mates are as buddies do.”
Musk is the world’s wealthiest individual, in line with Forbes, with a internet value of $504.1 billion.
— CNBC’s Lora Kolodny contributed to this report.
