Norway’s Wealth Fund Votes Against Tesla CEO’s $1 Trillion Pay Package

In Focus

• Norwegian sovereign wealth fund will vote against Musk’s $1 trillion pay package
• The wealth fund has a valuation of $2 trillion
• Tesla investors will decide on the pay package on November 6, 2025

Norway’s wealth fund will vote against Tesla CEO’s proposed pay package, Reuters reported. The vote will go against Tesla’s board guidance issued last week. The Norwegian sovereign wealth fund’s valuation is approximately $2 trillion, which makes it the largest in the world.

Mixed Reactions from Institutional Investors

Investors will decide whether to approve Elon Musk’s pay package on November 6, 2025, ahead of the annual Tesla shareholders meeting.

If approved, the package will be the largest-ever compensation agreement for a CEO. Critics have termed Musk’s $1 trillion pay deal as excessive. To date, the Norwegian wealth fund is the largest external institutional investor to go against Musk’s proposed compensation package.

Another large investor, Baron Capital, said it will support the pay package. Other large institutional investors like BlackRock, State Street, and Vanguard are yet to reveal their voting plans.

Tesla board chair Robyn Denholm urged investors to approve the pay package arguing that Musk could quit as the EV maker’s CEO if the proposed deal is not passed.

NBIM Opposes Musk’s Pay Package

The Norges Bank Investment Management (NBIM) is among institutional investors who are concerned by the proposed pay size

“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—consistent with our views on executive compensation,” NBIM said.

NBIM said it will also vote against two of the three directors who are up for reelection. The investment firm holds a 1.12% stake in Tesla valued at $17 billion, voted not to Musk’s previous pay package. This move drew a sharp response from Musk to a point where he skipped a conference in Oslo.

The Tesla board proposed a $1 trillion dollar pay package for CEO Musk back in September 2025. The pay package features 12 tranches of shares to be issued to Musk only when Tesla achieves specific milestones over the next 10 years.

Musk’s Pay Package Vote at a Glance

• The package is the largest-ever proposal for a CEO
• NBIM will vote against the pay package
• The investment bank will also vote against two directors seeking reelection
• Baron Capital supports the pay package

Can Musk Benefit Without Meeting Pay Package Obligations?

Tesla says its CEO will earn nothing unless the company achieves the milestones set out in the pay package. However, experts say that Musk can still earn billions of dollars without achieving those milestones.

Musk triggered an 8% Tesla stock jump recently after a $1 billion share purchase. Norway’s sovereign wealth fund said it will also vote against Tesla’s proposed stock compensation plan. This plan covers Tesla employees and might also be used to reward CEO Elon Musk.