The Norwegian wealth fund’s vote is the latest blow to Musk’s $1 trillion pay package

Norway’s sovereign wealth fund voted against Tesla’s proposal to give CEO Elon Musk a $1 trillion compensation package.

The fund, managed by Norges Bank Investment Management, owns a 1.14% stake in Tesla worth about $11.7 billion, according to its mid-year filings in June.

“While we appreciate the significant value created under Mr. Musk’s visionary role, we are concerned about the overall size of the award, the dilution, and the lack of dilution of key person risks — consistent with our views on executive compensation,” the fund said in a statement posted on its website. “We will continue to seek a constructive dialogue with Tesla on this and other topics.”

NBIM’s rejection may not be enough to thwart the proposal. But it’s the latest hurdle in Tesla’s long campaign to influence shareholders to give Musk the largest company-performance pay package in history. Advisory groups such as ISS and Glass Lewis also recommended voting against the pay package.

Musk argued that the compensation package is less about money and more about control. The CEO recently made this point during the company’s third-quarter earnings call and threatened to leave Tesla if the package was not approved.