Fund Power

Oil Fund Opposes Musk’s $1T Pay Deal

Norway’s sovereign wealth fund made waves this week, after it said it would vote against Tesla CEO Elon Musk’s $1 trillion pay package — citing worries over size, dilution, and key person risk.

The Norwegian fund is the world’s largest sovereign wealth fund, and among the top shareholders of Tesla. 

• The fund holds a 1.16% stake in Tesla, worth $17 billion
• It also opposes two board members and Tesla’s general stock plan
• While Musk’s package is likely to pass, Norway’s stance signals activist investing in action.

Norway Presses Pause on Ethical Divestments

Norway’s parliament is debating a proposal to pause new ethical divestments for about a year, while the sovereign wealth fund’s exclusion rules are reviewed.

Finance minister warned that current rules could force the fund to exit from top global firms like Apple and Nvidia. The rules date back to 2004, before modern conflicts and AI risks.

The decision came after the US criticized the fund for divesting from construction equipment company Caterpillar, linked to Israel military use.

What Is Norway’s Wealth Fund?

Norway’s sovereign wealth fund, also known as the Oil Fund, is the largest soveregin wealth fund in the world with stakes in more than 8,500 listed companies.

It owns 1.5% of the world’s stock markets combined and finances 25% of Norway’s public spending.

It’s managed by Norges Bank, the central bank of Norway, with all Norwegians as the fund’s stakeholders.

Its mandate: maximize returns while following ethical guidelines set by parliament.

What Is Activist Investing?

Activist investors use ownership to influence corporate decisions from CEO pay to mergers and acquisitions.

Norway’s fund often votes against excessive compensation, poor governance, or unethical practices. As it’s among the top 10 investors in most public companies, it has at least some sway in how they’re governed.

The fund acts independently, often working alongside proxy advisers, using its scale to push for changes. Proxy advisers like ISS and Glass Lewis help guide voting decisions for investors who hold shares but may not attend shareholder meetings directly.

Tesla Pay Package Sparks Global Debate

Norway’s $2.1 trillion wealth fund just voted against Elon Musk’s proposed Tesla pay package. Under the deal, Musk would gain Tesla stock worth $1 trillion over the course of ten years. Now it’s your turn: where do you stand on CEO compensation?