'We Had A Problem...' Europe’s Largest Pension Fund Divests €571 Million In Tesla Over Elon Musk's Salary

Stichting Pensioenfonds ABP, Europe’s largest pension fund, has sold its entire €571 million ($585 million) stake in Tesla Inc. in the third quarter of 2024.

A spokesperson for ABP revealed that the decision was partly due to disagreements with Elon Musk ’s remuneration package. “We had a problem” with Musk’s pay package, the spokesperson said as mentione din the report by Bloomberg.

Musk’s Pay Package Under Scrutiny
The sale follows ABP’s June vote against Musk’s record-setting pay package, which was initially valued at $2.6 billion but escalated to $56 billion before being struck down by a Delaware judge last month.

As per the report by Bloomberg, The package, deemed “controversial and exceptionally high,” had previously garnered shareholder support but failed to pass judicial review.

The Dutch newspaper Het Financieele Dagblad reported that ABP’s decision was also influenced by concerns over poor working conditions at Tesla. Additionally, the pension fund factored in costs, returns, and its commitment to responsible investment while making the call, as noted by Bloomberg.