Good morning. Norway’s sovereign-wealth fund rejected Tesla Chief Executive Elon Musk’s new $1 trillion pay package, becoming the first major investor to disclose its decision.

• Who objected? Norges Bank Investment Management, the arm of the central bank which manages the $1.9 trillion fund, raised concerns Tuesday over the size of the remuneration package.
   
• Significance: With a 1.2% stake in Tesla, the fund is the sixth-largest institutional investor behind others such as Vanguard and BlackRock, according to FactSet. It is the first major institutional investor to disclose how it voted.
   
• Who supports: Other Tesla shareholders have come out in favor of the proposal, including Morgan Stanley’s Counterpoint Global fund and Florida’s public pension fund. Charles Schwab, which has a stake in Tesla of around 0.6%, said on Tuesday that it would vote in favor of the package.
   
• What’s 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.

White House seeks sanctions repeal ahead of Syrian president’s talks with Trump.

Administration officials are hoping to give a boost to Syria’s leader, Ahmed al-Sharaa, before he meets with President Trump on Monday by seeking repeal of a major U.S. sanctions law that has impeded rebuilding the Middle East country after a 13-year civil war.

Sharaa, a former leader of a U.S.-designated terror group, has been embraced by President Trump after he helped oust Syria’s longtime dictator Bashar al-Assad last year. The Senate has already passed legislation that would repeal the 2019 sanctions law that placed severe restrictions on the Syrian economy.

Beneficient founder Brad Heppner charged with securities fraud.

Brad Heppner, a Texas-based businessman who served as chairman of financial-services companies Beneficient and GWG Holdings, was indicted Tuesday by federal prosecutors on fraud charges tied to more than $1 billion of investor losses.

After founding Beneficient, which aimed to provide liquidity to high-net-worth individuals, Heppner led his firm into a merger with GWG Holdings, an established financial enterprise known for selling bonds to retail investors. For over two years between 2019 and 2021, Heppner served as chairman of both companies while GWG made a series of financial contributions to Beneficient in return for equity.

Heppner induced GWG to invest in Beneficient by making false statements to board directors and falsifying audit documents, federal prosecutors alleged. Beneficient used funds from GWG to make payments to a shell entity that Heppner controlled, according to a federal indictment unsealed Tuesday in the Southern District of New York.

• A string of alleged frauds by corporate borrowers is spurring a reckoning across Wall Street, sending bankers and investors scrambling to prevent future blowups.
   
• The U.S. sanctioned eight individuals and two businesses for laundering proceeds of North Korean cybercrimes and information-technology work that it said in part supports Pyongyang’s weapons of mass destruction, Risk Journal reports.
   
• The U.S. accused Ball Corp. of underpaying tariffs on some of its imports, the aluminum packager said in a securities filing.
   
• One of the questions that has been hanging over the bankruptcy of First Brands: Where did all the money go? A lawsuit filed Monday by the auto-parts supplier’s new management team against founder Patrick James claims to have some answers.
   
• Marquee venture-capital firm Sequoia Capital is replacing its top leader, Roelof Botha, in one of the biggest shake-ups in the world of Silicon Valley investing.

What’s at stake as Trump’s tariffs go before the Supreme Court.

When the Supreme Court hears arguments Wednesday over President Trump’s unilateral decision to impose sweeping global tariffs, the justices will be weighing questions about presidential authority, in a case that is central to Trump’s agenda.

Also at stake: trillions of dollars. Here is what you need to know about the potential consequences of the Supreme Court’s decision.

Climate finance must address resilience and adaptation, bankers say

Climate change and extreme weather events are pushing companies to think differently when it comes to climate finance, Yusuf Khan reports from a pre-COP30 event in São Paulo for Risk Journal, with two global financial institutions saying that adaptation and resilience becoming increasingly core.

What this is: The two are growing elements of the climate finance world, where investments are no longer focused only on reducing the effects of climate change or trying to reverse it, but instead on withstanding the damage brought by a warming world. For instance, one such investment might be investing in solar power that could be more easily restored during a hurricane.

• The real-estate industry is adapting to climate change with a new slate of climate-conscious developments, reports Clara Hudson for Risk Journal. The efforts come as new energy codes and requirements are unfolding.
   
• Jeep-maker Chrysler is recalling some 320,000 hybrid vehicles in the U.S. over concerns that high-voltage batteries may fail internally and lead to a vehicle fire.
   
• One of Victoria’s Secret’s largest shareholders is turning up the pressure on the struggling lingerie retailer, seeking a shake-up of the board.
   
• No leader in the Caribbean has embraced the Trump administration’s forceful new military presence in the region like the prime minister of Trinidad and Tobago.
   
• The U.K. government’s upcoming budget will focus on lowering inflation and paving the way for the Bank of England to lower its key interest rate, treasury chief Rachel Reeves said Tuesday.

• Republican and Democratic senators signaled optimism about reaching a bipartisan deal to end the government shutdown, while striking cautionary notes about how quickly lawmakers could resolve the impasse that is now tied with the longest ever at 35 days.
   
• The Trump administration is negotiating a deal with weight-loss drugmakers Eli Lilly and Novo Nordisk that would allow the lowest doses of some of their obesity drugs to be sold to consumers at $149 for a month’s supply via TrumpRx, according to people familiar with the matter.
   
• Kimberly-Clark Chief Executive Mike Hsu aims to stoke the consumer company’s growth by veering into Kenvue’s higher-margin but risky health products.
   
• The artificial-intelligence trade is starting to make investors nervous.

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