According to TheRegister.com, Norway’s sovereign wealth fund is opposing Elon Musk’s proposed $1 trillion Tesla compensation package ahead of the November 6 shareholder vote. Norges Bank Investment Management, which manages hundreds of billions in oil and gas profits, specifically cited concerns about the award’s total size, dilution, and lack of mitigation for “key person risk.” The market reacted immediately, with Tesla’s stock dropping 4.4% following the announcement. This comes after Tesla chair Robyn Denholm warned last week that Musk might leave if the package isn’t approved, despite Tesla’s revenue growth from $200 million in 2011 to $95 billion today.
The institutional investor dilemma
Here’s the thing about Norway‘s opposition – this isn’t just any fund manager throwing shade. NBIM is the world’s largest sovereign wealth fund, and when they speak, markets listen. They’re basically saying “we appreciate what you’ve done, but this is too much.” And they’re not wrong about the numbers – we’re talking about a package that could theoretically make Musk the world’s first trillionaire.
But the really interesting part? This isn’t just about the money. The fund specifically mentioned “key person risk” – which is corporate speak for “what happens if Elon gets hit by a bus?” Or more realistically, what happens when his attention is divided between Tesla, SpaceX, X, Neuralink, and whatever other moonshot he’s dreaming up? They’re essentially questioning whether tying the company’s future so tightly to one person is smart governance.
The Musk drama factor
Now let’s talk about the elephant in the room – Musk’s increasingly controversial public persona. The Register notes his political outbursts, including that Nazi-like salute incident and his support for far-right activists. There’s even research suggesting his political stance has cost Tesla one million US EV sales. When your CEO’s personal brand starts actively hurting sales, should you really be handing him another trillion dollars?
And here’s where it gets really awkward. While regular people are struggling with inflation, Oxfam research shows the top 10 US billionaires saw their wealth increase by $698 billion last year alone. Musk’s personal net worth is already estimated at $497 billion. So basically, we’re debating whether someone who could already buy several small countries needs another trillion.
What happens now?
The November 6 vote is shaping up to be a real showdown. Tesla’s board is playing hardball with the “he might leave” threat, but major institutional investors are clearly getting cold feet. Norway’s voting rationale shows they’re trying to balance rewarding performance with responsible governance.
Honestly, this feels like a turning point. Institutional investors are finally saying “enough is enough” on executive compensation, even for superstar CEOs. The question is whether other major shareholders will follow Norway’s lead or whether Musk’s cult of personality will carry the day. Either way, Tesla shareholders are in for a wild ride leading up to that vote.
