Elon Musk’s potential $56 billion pay package deal was the explanation Europe’s largest pension fund bought its total Tesla $TSLA stake not too long ago, because the agency bought all of its $585 million price of shares.
A spokesperson for Stichting Pensioenfonds ABP mentioned to Bloomberg that “We had an issue” with Musk’s pay package deal, which continues to be in limbo after it was dominated to be unreasonable by Delaware Chancery Court docket Choose Kathaleen McCormick.
The large $56 billion was voted in by Tesla shareholders on two separate events, as soon as in 2018 and one other final yr. The second vote for the pay package deal to be given to Musk adopted an preliminary ruling from Choose McCormick that invalidated the $56 billion.
Stichting Pensioenfonds ABP was one shareholder that voted towards Musk’s pay package deal.
A Dutch newspaper often called Het Financieele Dagblad first reported the story but in addition listed Tesla’s working circumstances as a cause to promote its stake in Tesla.
🚨 ‘WE HAD A PROBLEM’: Europe’s largest pension fund, Stichting Pensioenfonds ABP, bought its total stake in Tesla $TSLA, an estimated $585 million as a result of it “had an issue” with @elonmusk‘s $56bn pay package deal.
It additionally bought due to “prices, potential inventory return, and… pic.twitter.com/tR78hX0p3S
— TESLARATI (@Teslarati) January 14, 2025
The timing of the sale is attention-grabbing, to say the least. Choose McCormick denied the pay package deal as soon as once more in December, and Tesla appealed the ruling. It’s exhausting to see what’s going to change the Choose’s thoughts at this level, particularly as she has already dominated towards it twice.
Some imagine Musk will nonetheless get the pay package deal a method or one other. Wedbush’s Dan Ives wrote to traders in December:
“We proceed to imagine Tesla and Musk will combat this tooth and nail all the best way to the Supreme Court docket in Delaware after which doubtlessly to the Federal system as this stays a irritating headache for Tesla, Musk, and its shareholders. We additionally imagine this case may very well be the catalyst for extra public firms to go away the state of Delaware for his or her company standing because the authorized precedents set on this Tesla/ Musk case may be very eye opening to public Boards across the nation and go towards shareholders vote in a harmful precedent in our view.”
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