Norway’s sovereign wealth fund — Norges Bank Investment Management (NBIM), one of the world’s largest institutional investors — has come out against Tesla’s proposed compensation package for CEO Elon Musk, marking the first major public objection ahead of a critical shareholder vote.
The proposal would grant Musk an additional 12% stake in Tesla if the company reaches an unprecedented $8.5 trillion valuation over the next decade, potentially turning it into the most valuable corporation in history. The payout’s estimated value exceeds $1 trillion, depending on Tesla’s future market cap.
NBIM Flags Governance and Concentration Risks
In its statement, NBIM acknowledged Musk’s pivotal role in Tesla’s rise but expressed strong concern over “the extraordinary size of the proposed reward, shareholder dilution risk, and the company’s heavy reliance on a single executive.”
NBIM emphasized that the structure of the payout does not align with principles of sustainable corporate governance, which the fund applies across its global portfolio.
NBIM holds roughly 1.2% of Tesla’s outstanding shares—making it the company’s sixth-largest institutional shareholder. Analysts note that the fund’s stance often influences how other large investors, including pension funds and asset managers, shape their voting decisions.
Shareholder Vote Set for November 6
Tesla shareholders will vote on November 6 to either approve or reject the new compensation framework. Milestones tied to the payout include:
- scaling vehicle production to 20 million units annually,
- deploying one million robotaxis,
- reaching 10 million active subscribers to Tesla’s Full Self-Driving service.
Several major U.S. pension funds have already stated their opposition. Proxy advisory giants ISS and Glass Lewis also recommended voting against the package.
Musk’s Influence Still Matters
Musk controls approximately 15% of Tesla’s voting shares, giving him substantial sway despite the growing resistance. Retail investors, who historically show strong support for Musk, may also impact the final result.
A Recurring Compensation Battle
NBIM previously voted against Musk’s 2018 compensation plan — the same package that was overturned by a Delaware court earlier this year. Tesla is currently appealing that decision to the state Supreme Court, and the case’s outcome could influence the fate of this new proposal.
Earlier this year, Tesla also reported $80 million in unrealized gains on its Bitcoin holdings for Q3 2025, underscoring ongoing interest from investors tracking the company’s financial positioning.
