The world’s largest wealth fund is voting “no” on Elon Musk’s $1 trillion pay package. Norway’s sovereign wealth fund, a $17 billion Tesla investor, has officially opposed the deal.
The fund acknowledged the “significant value” Musk has created but said it could not support the proposal. Its reasons include the “total size of the award,” “dilution,” and the “lack of mitigation of key person risk.”
This decision adds to a growing consensus of opposition. The two main advisory firms, ISS and Glass Lewis, have both recommended rejection. The largest US public pension fund, CalPERS, has also stated it will vote “no.”
The package, which could make Musk the world’uploads/2015/05/Elon-Musk-Speaks-Out-About-His-Concerns-Over-AI-and-What-Hes-Doing-to-Prevent-a-Dystopian-Future-696×400.jpg’s first trillionaire, is being heavily promoted by Tesla’s board. Chair Robyn Denholm warned that failing to approve it could lead to Musk’s departure.
This high-stakes vote is happening as Tesla’s sales are falling, with global deliveries down 13% in the first half of the year and steep drops in European markets.