The world’s largest sovereign wealth fund — Norway’s Norges Bank Investment Management (NBIM) — has officially announced it will vote against Elon Musk’s $1 trillion Tesla compensation package, calling the deal “excessive” and risky for shareholders.
“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,”
said NBIM in its statement.
💰 The Numbers Behind the Controversy
- Potential value: Up to $1 trillion in stock over 10 years
- Adjusted effective value (after cost deduction): ≈ $878B
- Fund’s Tesla stake: 1.12%, worth $17B
- Tesla market cap: ≈ $1.5T, with Musk holding 13.5% voting power
The package would be the largest CEO compensation plan in history — and Tesla’s board warns Musk could leave if it’s rejected.
Proxy advisors ISS and Glass Lewis have urged shareholders to vote against the plan, citing concerns over dilution and governance concentration.
🌍 Governance at a Crossroads
NBIM’s stance is significant: as a global ESG leader managing $2.1 trillion, its opposition signals growing unease among institutional investors about founder control, pay governance, and concentration of power in mega-cap tech.
Yet, with strong retail investor support and Musk’s own voting stake, blocking the deal remains unlikely.
🔹 The Takeaway
This isn’t just about executive pay — it’s a test of modern corporate governance in the age of visionary CEOs.
How much is too much when one person embodies a company’s identity, innovation, and market value?
The outcome will shape how investors worldwide balance visionary leadership vs. fiduciary discipline in the decade ahead.