Norway sovereign wealth fund rejects Elon Musk’s $1 trillion pay deal

Norway’s $2 trillion sovereign wealth fund said it will vote against Elon Musk’s trillion-dollar pay package at Tesla‘s annual shareholder meeting this week, rebelling against management guidance and threats from Musk to step down if the deal is rejected.

Norges Bank Investment Management (NBIM), which manages the fund — the largest of its kind in the world, and a major shareholder in Tesla — said on Tuesday that it had already cast its vote against Musk’s remuneration package as CEO of the carmaker.

“While we appreciate the significant value created under Mr. Musk’s visionary role, we are concerned about the total size of the award, dilution, and lack of mitigation of key person risk- consistent with our views on executive compensation,” NBIM said in a statement.

“We will continue to seek constructive dialogue with Tesla on this and other topics,” the fund’s managers added.

Tesla shares were 2.4% lower in premarket trade.

Tesla’s Board of Directors is asking shareholders to approve a pay plan for Musk that could see him granted almost $1 trillion in stock and expand his voting powers at the company. The full award would be contingent on Tesla hitting certain milestones over the next 10 years.