Europe’s largest pension fund, Stichting Pensioenfonds ABP, announced the sale of its entire €571 million ($585 million) stake in Tesla Inc. during the third quarter of 2024. The decision was largely driven by concerns over Elon Musk’s controversial compensation package, which the fund described as a significant point of contention.
A spokesperson for ABP confirmed the move, stating that the pension fund “had a problem” with Musk’s pay structure. Alongside this, ABP also cited broader considerations, such as cost management, return on investment, and adherence to responsible investment principles. The divestment was first reported by the Dutch newspaper Het Financieele Dagblad, which also suggested that poor working conditions at Tesla were another factor in the fund’s decision to sever ties with the electric vehicle giant.
Musk’s pay package, which has been a source of intense debate, was previously challenged by a Delaware judge. Despite shareholders’ backing and Musk’s request for reconsideration, the judge ruled to cancel the package, which initially valued stock options at $2.6 billion but had ballooned to $56 billion by the time it was struck down.
In June 2024, ABP joined other critics in opposing Musk’s compensation, labeling the package “controversial and exceptionally high.” The fund’s exit from Tesla marks a notable instance of institutional pushback against executive pay in the tech sector.
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