Elon Musk’s potential $56 billion pay bundle was the rationale Europe’s largest pension fund bought its total Tesla $TSLA stake not too long ago, because the agency bought all of its $585 million value of shares.
A spokesperson for Stichting Pensioenfonds ABP mentioned to Bloomberg that “We had an issue” with Musk’s pay bundle, which remains to be in limbo after it was dominated to be unreasonable by Delaware Chancery Courtroom Choose Kathaleen McCormick.
The huge $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 bundle 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 bundle.
A Dutch newspaper referred to as Het Financieele Dagblad first reported the story but in addition listed Tesla’s working situations 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 bundle.
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 bundle as soon as once more in December, and Tesla appealed the ruling. It’s arduous to see what is going to change the Choose’s thoughts at this level, particularly as she has already dominated towards it twice.
Some consider Musk will nonetheless get the pay bundle a method or one other. Wedbush’s Dan Ives wrote to traders in December:
“We proceed to consider Tesla and Musk will combat this tooth and nail all the way in which to the Supreme Courtroom in Delaware after which probably to the Federal system as this stays a irritating headache for Tesla, Musk, and its shareholders. We additionally consider this case may very well be the catalyst for extra public corporations to depart 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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