A key detail in Elon Musk’s $1 trillion pay package is alarming top investors: it could increase his stake in Tesla from 16% to over 25%.
This potential jump in ownership, which would come from new shares, is a primary driver of the “no” vote from Norway’s sovereign wealth fund. The fund explicitly cited “dilution” as a main concern.
A stake of over 25% would not only make Musk the world’s first trillionaire but also significantly tighten his control over the company, diluting the power and equity of all other shareholders.
The Norwegian fund, Tesla’s seventh-largest investor, said the “total size” and “dilution” were “concerning.”
This opposition is shared by advisory firms Glass Lewis and ISS, which have also warned shareholders about the implications of the deal. The Tesla board, however, argues this is a necessary incentive to keep Musk focused on the company.