Musk’s $1T Pay Plan: A “Key Person Risk” Too Big for Norway’s Fund

The “key person risk” associated with Elon Musk is a central reason why Norway’s sovereign wealth fund is rejecting his proposed $1 trillion pay package.
The fund, which is the world’s largest and Tesla’s seventh-biggest shareholder, announced its “no” vote ahead of the annual meeting. It stated it could not support the deal due to its “total size” and the “lack of mitigation of key person risk.”
This concern directly challenges the Tesla board’s narrative. The board, led by Robyn Denholm, argues that Musk is the value, and failing to retain him with this package would be a “significant value” loss for shareholders.
The vote comes as Tesla’s performance shows signs of weakness. Sales have fallen dramatically in several European countries, including Norway (down 50%), and shipments from its Shanghai factory have also declined.
The Norwegian fund is not alone in its opposition. It joins the two most influential proxy advisory firms, ISS and Glass Lewis, and major US pension funds in recommending shareholders vote “no” on Thursday.