A $17 billion roadblock has appeared in front of Elon Musk’s $1 trillion payday. Norway’s sovereign wealth fund, which holds that stake in Tesla, has declared it will vote against the historic compensation package.
The fund, the seventh-largest single shareholder, is the world’s largest sovereign wealth fund, and its “no” vote carries significant symbolic and financial weight.
In its statement, the fund acknowledged Musk’s “visionary role” but said it could not overlook its “concerns about the total size of the award, dilution and lack of mitigation of key person risk.”
This move adds to a growing wave of opposition. The two most prominent shareholder advisory groups, ISS and Glass Lewis, have both advised investors to reject the deal.
Tesla’s board, meanwhile, is in full-on campaign mode, warning of a “significant value” loss if the package isn’t approved and Musk’s focus wanders.