Tesla’s $1T Pay Package for Musk Hits Wall of Opposition

Tesla’s $1 trillion pay proposal for Elon Musk has hit a wall of opposition from major institutional investors. Norway’s sovereign wealth fund, a $17 billion shareholder, is the latest to announce it will vote “no.”
The fund’s reasoning is based on governance principles, citing “concerns about the total size of the award, dilution and lack of mitigation of key person risk.”
This “no” vote is particularly powerful as it aligns with recommendations from both Glass Lewis and ISS, the two leading shareholder advisory firms. When these groups align with a major investor, it can sway many other institutional votes.
Other major pension funds, including the California Public Employees’ Retirement System (CalPERS) and the American Federation of Teachers, are also opposing the deal, creating a formidable bloc against the board’s recommendation.
Tesla’s chair, Robyn Denholm, has framed the vote as a test of loyalty, warning that a “no” vote could risk Musk’s departure. This sets the stage for a tense showdown at Thursday’s shareholder meeting.