Tesla CEO Elon Musk is staring down a potentially costly backlash from one of his biggest investors. The Norwegian sovereign wealth fund, which holds 1.16% stake in the electric vehicle giant, announced that it will vote against a proposed pay package worth up to $1 trillion over the next decade.
The fund's concerns are centered around the sheer size of the award, as well as its potential dilutive effects on existing shareholders. The decision marks a significant departure from its previous support for Musk's compensation plans, and suggests that the fund will be pushing back against what it sees as excessive executive pay.
Not all investors are opposed to the plan, however. Baron Capital Management, which holds around 0.4% of Tesla's outstanding shares, announced last week that it would vote in favor of the compensation package. The firm's founder, Ron Baron, praised Musk for his role in building one of the world's most valuable companies.
Musk himself is not only the largest individual investor at Tesla but also holds 15.79% stake in the company. His massive pay package would come with a total value of as much as 12% of all outstanding shares if the firm meets ambitious targets, including significant increases in car production and share price.
The fund's concerns are centered around the sheer size of the award, as well as its potential dilutive effects on existing shareholders. The decision marks a significant departure from its previous support for Musk's compensation plans, and suggests that the fund will be pushing back against what it sees as excessive executive pay.
Not all investors are opposed to the plan, however. Baron Capital Management, which holds around 0.4% of Tesla's outstanding shares, announced last week that it would vote in favor of the compensation package. The firm's founder, Ron Baron, praised Musk for his role in building one of the world's most valuable companies.
Musk himself is not only the largest individual investor at Tesla but also holds 15.79% stake in the company. His massive pay package would come with a total value of as much as 12% of all outstanding shares if the firm meets ambitious targets, including significant increases in car production and share price.
I'm kinda surprised by this move from the Norwegian sovereign wealth fund. I mean, Elon Musk has done some amazing things for Tesla, and it's not like he's been making decisions for the company just to line his own pockets (although, let's be real, $1 trillion is a lot of cash 
). I think it's great that other investors are supporting the pay package, but at the same time, I get why the fund would be cautious. Maybe this will prompt some changes and make the whole thing more equitable? 
. I mean, who needs $1 trillion over a decade? It's just crazy talk. And don't even get me started on the dilutive effects... it's like they're not paying attention to how this could hurt existing shareholders 
. Baron Capital Management is just out of touch with reality, if you ask me. I mean, Ron Baron thinks Elon Musk is some kind of hero just because he built Tesla into a fortune? Give me a break 
. This pay package is just a power play by Musk to further solidify his control over the company. It's not about the money; it's about him getting richer off the backs of other investors 
. Mark my words, this will end badly for Tesla and its shareholders 
.
). You gotta make sure all the pieces fit together, right? And in this case, Elon's massive pay package is kinda like one of those oversized pieces that might not fit. 
Or maybe Elon's gonna have to get creative and show them what he's working on. 
. It just goes to show that even those with deep pockets can't buy everything. The fund's concerns are valid - a pay package that big is just too much. It's like Elon Musk thinks he's above the law 
I think this situation highlights the need for a more nuanced approach to executive compensation. It's time to rethink what we're paying these high-flying execs and make sure they're using those funds for the greater good 
I mean, $1 trillion over a decade? That's just insane! My friend's brother works at Tesla and he was telling me about how they're always talking about the CEO's plans for growth, but this seems like a lot even for them. I guess some investors think he deserves it tho... Ron Baron from Baron Capital Management seems pretty confident in Musk's abilities. 
But the Norwegian sovereign wealth fund is being kinda harsh, imo. What do you guys think? Should Elon get all that dough or not? 
. On the other hand, Ron Baron's got a good point that Musk has been instrumental in building one of the world's most valuable companies 
. How much more should Elon be making again? 
Do they not deserve some kind of consideration here? This whole thing just smells like a classic case of corporate greed to me. Let's hope the other investors come out swinging and put the kibosh on this outrageous proposal 
. It's gonna be interesting to see how this plays out!
Still, gotta respect the fund for speaking up and trying to keep things fair for existing shareholders. It's not about being all harsh or anything, it's just business, right? 