Good morning, CFOs. A major Tesla investor rejects Elon Musk’s pay package; IBM to lay off thousands of employees; plus, one of Victoria’s Secret’s largest shareholders is turning up the pressure.

Elon Musk’s proposed $1 trillion Tesla pay package has new opposition.

Norway’s sovereign-wealth fund rejected the Tesla chief executive’s new pay package, becoming the first major investor to disclose its decision, Becky Peterson and Gareth Vipers report. Norges Bank Investment Management, the arm of the central bank that manages the $1.9 trillion fund, raised concerns Tuesday over the size of the remuneration package.

“While we appreciate the significant value created under Mr. Musk’s visionary role, we are concerned about the total size of the award, dilution and lack of mitigation of key person risk—consistent with our views on executive compensation,” it said in a statement.

What comes next? On Thursday, Tesla will host its annual shareholder meeting and announce the results of voting on several proposals including Musk’s compensation package, which offers him an additional 12% stake in Tesla if he grows the company to an $8.5 trillion valuation over the next decade, nearly eight times its current valuation. At that level, the proposed award would be valued at slightly more than $1 trillion.

What others have already said: Smaller public pension funds, like the American Federation of Teachers and various New York City retirement systems, have also publicly opposed the pay package, as have major proxy advisory firms Institutional Shareholder Services and Glass Lewis. Several Tesla shareholders have come out in favor of the proposal, including Morgan Stanley’s Counterpoint Global fund and Florida’s public pension fund. Musk, who is Tesla’s largest shareholder with a voting stake of around 15%, can also vote on the proposal.

• Tesla Is Obsessed With Musk’s Pay Package. Musk Is Obsessed With AI.

📆 Earnings

• Allstate
• DoorDash
• McDonald’s
• McKesson
• MetLife
• Qualcomm
• Toyota Motor

📈 Economic Indicators

ADP releases its National Employment for October.

The ISM releases its Services PMI for October.

The Supreme Court hears oral arguments for two cases in which small businesses sued the Trump administration, alleging illegal use of the International Emergency Economic Powers Act to implement tariffs.

International Business Machines is cutting thousands of jobs this quarter, the latest company to shed workers as it seeks to reposition its business in the age of artificial intelligence.

The tech company said the layoffs will affect a low single-digit percentage of its total workforce. IBM employed about 270,000 globally as of the end of 2024. The company didn’t further clarify how many people it would cut.

IBM joins a growing list of companies shedding workers, propelled by a shift in C-suite offices toward using AI tools and pushing for efficiency among rank-and-file employees. Amazon.com announced layoffs last week that affected roughly 14,000 roles. United Parcel Service recently said it had reduced its management workforce by about 14,000 positions over the past 22 months, and Target also recently shed 1,800 corporate roles.

📰 Other headlines

• Major Investor in Victoria’s Secret Seeks Board Shake-Up
• Yum Brands Explores Sale of Pizza Hut
• Democrats Pin Election Hopes on Discontent With Trump’s Economy
• Sequoia Capital Leader Exits in VC Shake-Up
• Palantir’s Market Value Skyrocketed. See How Its Revenue Is Still Catching Up.
• Burger King Braces for the Demise of the Penny
• Carl Icahn, Nearing 90, Is Still Trying to Right His Empire
• AI’s Power Rush Lifts Smaller, Pricier Equipment Makers

📈Earnings wrapup

• Pinterest Third-Quarter Sales Rise, Sees Slower Growth in Fourth Quarter
• Cava Cuts Full-Year Outlook as Same-Store Sales Growth Slows in Third Quarter
• AMD Reports Sharply Higher Profits, Sales
• Norwegian Cruise Line Says Family Bookings Hurt Pricing Mix
• Rivian Third-Quarter Revenue Rises 78% on Higher Vehicle Deliveries, Pricing
• Marriott’s Luxury Hotels Help Lift Revenue, Profit
• Match Results Improve, Though Tinder Is Still Searching for Love From Users
• Molson Coors Leans on Affordable Beers as Industry Weakness Persists
• Pfizer Profit Falls Amid Lower Covid-19 Drug Demand
• Uber Expects Stable Growth on Continued Strength in Mobility, Delivery Services

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Wyndham Hotels & Resorts, the Parsippany, N.J.-based hotel franchisor, said Chief Financial Officer Michele Allen is stepping down. Allen, who is also head of strategy, is departing to pursue a new career outside the hotel industry, the company said. She was appointed finance chief in 2019 and has been with the company for 25 years. Kurt Albert, who currently serves as treasurer and head of financial partnerships and planning, will become interim CFO while the board searches internally and externally for candidates. Allen will stay on in an advisory role through the end of 2025.

—Katherine Hamilton contributed to today’s Ledger.

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