Elon Musk’s potential $56 billion pay bundle was the rationale Europe’s largest pension fund bought its whole 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 stated to Bloomberg that “We had an issue” with Musk’s pay bundle, which continues 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 12 months. 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 in opposition to Musk’s pay bundle.
A Dutch newspaper generally known as Het Financieele Dagblad first reported the story but additionally listed Tesla’s working situations as a motive to promote its stake in Tesla.
🚨 ‘WE HAD A PROBLEM’: Europe’s largest pension fund, Stichting Pensioenfonds ABP, bought its whole 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 fascinating, to say the least. Choose McCormick denied the pay bundle as soon as once more in December, and Tesla appealed the ruling. It’s laborious to see what is going to change the Choose’s thoughts at this level, particularly as she has already dominated in opposition to it twice.
Some consider Musk will nonetheless get the pay bundle a technique or one other. Wedbush’s Dan Ives wrote to traders in December:
“We proceed to consider Tesla and Musk will struggle this tooth and nail all the best way to the Supreme Courtroom in Delaware after which doubtlessly 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 in opposition to shareholders vote in a harmful precedent in our view.”
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