Norwegian sovereign wealth fund, a Tesla investor, rejects Musk’s pay deal

Institutional investor Norges Bank Investment Management (NBIM), a Norwegian sovereign wealth fund that manages resources of $1.9 billion, rejected Tesla's proposed $1 billion salary deal for its founder and CEO, Elon Musk, The Wall Street Journal reported.

With this, Norway's sovereign wealth fund became the first major Tesla investor to reveal the direction of its vote. The results will be released Thursday at an annual meeting of investors in the U.S. electric car maker.

"While we appreciate the significant value created under Mr. Musk's visionary role, we are concerned about the overall size of the award, the dilution and the lack of risk mitigation for reliance on key individuals, consistent with our position on executive compensation," the fund said, in a statement quoted by the media outlet. "We will continue to seek constructive dialogue with Tesla on this and other issues."

The pay plan for Musk proposed and endorsed by the company's board sees the delivery of 12 tranches of Tesla share packages if the company manages to achieve a series of ambitious goals over a decade.

Tesla shares were down 5.15% in Tuesday's session on the U.S. Nasdaq market, settling at $444.26.

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