‘We’ve had a problem’ with field payment
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Europe’s largest pension fund has sold its stake in an electric vehicle company Tesla Inc (NASDAQ:TSLA) in the third quarter, the loss of future benefits and has always reached a high level Election 2024.
What happened: ABP Pension Fund Foundation He sold all of his shares in Tesla in the third quarter because of his proposal for a $56 billion pay package for Tesla’s CEO. Elon MuskShareholders approved it in June 2024.
A spokeswoman for the fund told Bloomberg on Sunday that “we had a problem” with Musk’s pay package.
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While Musk’s pay package was one of the main reasons for the sale, a fund spokesperson said expenses, potential stock returns and responsible investment criteria were also reasons for the sale.
Dutch newspaper Het Financieele Dagblad first reported the sale of Tesla shares by the pension fund and cited weak operating conditions from Tesla as the reason for the sale.
The stake was valued at $585 million at the time of the sale, according to Bloomberg.
ABP voted against a shareholder proposal for Musk’s pay package in June, saying it was “controversial and exceptionally high.”
Shareholders approved the pay package in June, but the plan was struck down again by a judge in December. Tesla has appealed the judge’s rulings, the latest in the pay package saga.
Musk’s pay package is worth $56 billion thanks to Tesla stock, hitting all the major milestones set out in the CEO’s first compensation plan.
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Why is it important? The pay package for Musk was excessive given Tesla’s history and its stock. If the appeal does not see the salary package, Tesla will need to pass the same salary package to Musk and the board of directors has warned that the new plan may be more expensive.
Tesla’s shares sold by ABP came ahead of an all-time high. Donald Trump In the year He won the presidential election in 2024.
