Elon Musk’s $1 trillion pay package is on the ropes, facing formal opposition from some of the world’s largest and most influential investors, including Norway’s sovereign wealth fund and CalPERS.
The Norwegian fund, a $17 billion shareholder, announced it would vote “no” due to the “total size” and “key person risk.” It joins the California Public Employees’ Retirement System (CalPERS), the largest public pension scheme in the US, in opposing the deal.
This coalition of dissent also includes the two most important shareholder advisory firms, Glass Lewis and ISS. Both have issued reports recommending that investors reject the massive payout.
The package is designed to reward Musk for growing Tesla’s valuation to $8.5 trillion, a move that would make him the world’s first trillionaire and increase his stake to over 25%.
Tesla’s board is in full defense mode, warning that a “no” vote could lead to Musk’s departure. This high-stakes drama unfolds as Tesla navigates a 13% drop in first-half global deliveries and declining sales in key regions.
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