World’s Largest Sovereign Fund Opposes Tesla CEO’s Compensation Deal
OSLO — Norway’s Norges Bank Investment Management (NBIM), which oversees the world’s largest sovereign wealth fund, has voted against Tesla’s proposed $1 trillion CEO compensation package for Elon Musk, marking a major setback ahead of the company’s annual shareholder meeting this week.
The fund, valued at roughly $2 trillion, holds about 1.14% of Tesla shares—an investment worth approximately $11.6 billion as of mid-2025.
In a statement, NBIM said it appreciates Musk’s “visionary leadership” and the value created under his tenure but expressed concern about “the total size of the award, dilution, and lack of mitigation of key person risk.”
NBIM added that it would “continue to seek constructive dialogue with Tesla” despite the vote against management’s recommendation.
Tesla Board Seeks Approval for Historic Pay Package
Tesla’s board has asked shareholders to approve a performance-based compensation plan that could grant Musk up to $1 trillion in stock options over the next decade. The plan would also expand his voting power within the company if Tesla meets specific performance targets.
The proposal has sparked debate among investors, proxy firms, and corporate governance advocates. Advisory firms Institutional Shareholder Services (ISS) and Glass Lewis both recommended rejecting the deal, while union-led groups like Take Back Tesla called it excessive.
Musk’s Response and Investor Reaction
In response to criticism, Elon Musk publicly dismissed proxy firm recommendations, calling ISS and Glass Lewis “corporate terrorists.”
“Tesla is worth more than all other automotive companies combined,” Musk wrote on X, asserting that his leadership is essential to maintaining the company’s success. “Which of those CEOs would you like to run Tesla? It won’t be me.”
Tesla shares dropped 2.5% in premarket trading following the announcement of NBIM’s opposition.
Past Disputes Between Musk and Norway’s Fund
This is not the first time NBIM has voted against Musk’s compensation proposals. The fund previously opposed reinstating Musk’s $56 billion pay deal in 2024 after it was overturned by a U.S. court. That plan—then the largest CEO pay package in history—was later reapproved by shareholders.
Following that dispute, text messages published by media outlets revealed Musk had declined an invitation to meet NBIM’s CEO, Nicolai Tangen, in Oslo, suggesting strained relations between the billionaire and the Norwegian institution.
Musk remains the world’s richest individual, with an estimated net worth of $504 billion, according to Forbes.
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