Tesla’s board is fighting to save Elon Musk’s $1 trillion pay package as a major investor, Norway’s sovereign wealth fund, has defected from the “yes” camp.
The fund, which holds a $17 billion stake, announced it will vote “no,” citing “concerns about the total size of the award” and “dilution.”
This move undermines the board’s key argument. Chair Robyn Denholm has been lobbying shareholders, claiming the deal is “essential” to retain Musk and prevent a “significant value” loss for the company.
The vote comes at a difficult time. Tesla’s sales have plummeted in key European markets like Sweden (down 89%) and Denmark (down 86%) in October, and shipments from its Shanghai factory are also down.
The Norwegian fund is not a lone wolf. It joins a pack of opponents, including the two most influential shareholder advisory firms, ISS and Glass Lewis, and CalPERS, the largest US public pension fund.