Norway's sovereign wealth fund said on Tuesday it would vote against Tesla CEO Elon Musk's $1 trillion compensation package at Tesla's annual shareholder meeting this week. Tesla investors will decide on Nov. 6 whether to approve what could be the largest CEO pay deal ever, and which critics say is too high.
Tesla's board is pushing for shareholder approval of the plan, with Chairman Robin Denholm warning last week that Musk could leave the company if the deal is rejected.
Norges Bank Investment Management, which manages Norway's sovereign wealth fund, said on its website: "While we appreciate the significant value created by Mr. Musk's visionary role, we are concerned about the overall size of the award, dilution and lack of key person risk mitigation, consistent with our view on executive compensation."
The fund is Tesla's seventh-largest shareholder, with a 1.12% stake worth $17 billion. The fund also voted against Musk's previous compensation plan, which was originally worth as much as $56 billion, prompting a strong response from Musk, who declined an invitation to attend a meeting in Oslo.
The fund also said on Tuesday it would vote against two of the three Tesla directors seeking re-election.