$1 Trillion Pay Plan for Musk Sparks “Key Person Risk” Warning

Norway’s sovereign wealth fund has issued a “key person risk” warning as its reason for rejecting Elon Musk’s $1 trillion pay package.
The fund, a top-seven investor in Tesla, announced it will vote “no” on the unprecedented deal. It stated it has concerns over the “total size” and the “lack of mitigation of key person risk,” highlighting the company’s over-reliance on its star CEO.
This puts the fund at odds with the Tesla board. Chair Robyn Denholm has argued that this “key person risk” is exactly why the package is needed—to ensure Musk doesn’t leave and cause a “significant value” loss.
The package itself would see Musk’s stake grow to over 25% if he can increase Tesla’s valuation to $8.5 trillion, making his personal fortune exceed $2 trillion.
The Norwegian fund is not alone in its opposition. It joins the two most powerful advisory firms, Glass Lewis and ISS, and other major pension funds in recommending rejection.