A $17 billion investor in Tesla is voting “no” on Elon Musk’s $1 trillion pay package, citing the “key person risk” as a major concern.
Norway’s sovereign wealth fund, the world’s largest, announced its opposition just days before the annual meeting. While praising Musk’s “visionary role,” the fund said the deal’s size and reliance on one person were unjustifiable.
This concern highlights a central paradox: the board, led by Robyn Denholm, is using the same “key person risk” to argue for the deal. Denholm has warned that Tesla risks a “significant value” loss if Musk, who also runs X and SpaceX, is not incentivized to stay.
The package would make Musk the world’s first trillionaire if Tesla’s valuation hits $8.5 trillion. However, the company is currently facing a 13% drop in first-half deliveries and slumping sales in Europe.
The Norwegian fund’s “no” vote adds to a chorus of dissent from influential advisory groups Glass Lewis and ISS, as well as major US pension funds, who all recommend rejecting the historic payout.
