The Tesla board’s primary argument for Elon Musk’s $1 trillion pay package—that the company risks “significant value” loss without him—is being put to the test, as a top investor has called their bluff.
Norway’s sovereign wealth fund, a $17 billion shareholder, announced it will vote “no.” The fund’s rejection counters the board’s narrative, focusing instead on the deal’s “total size” and “key person risk.”
Tesla’s chair, Robyn Denholm, has been vocal, writing to shareholders that the vote is “essential” to retain the 54-year-old Musk. Musk himself echoed this, asking on X which other auto CEO could run the company.
The Norwegian fund, however, is not swayed by the retention argument. It stated it would “continue to seek constructive dialogue,” but its vote is based on its governance principles.
This clash between the board’s warning and the fund’s principles comes as Tesla’s sales are falling in Europe and China, and just days before a tense annual meeting.
Tesla Board Warns of “Significant Value” Loss as Top Investor Rejects $1T Musk Deal
