Summary
Dutch pension fund Stichting Pensioenfonds ABP sold its $585 million Tesla stake over concerns about Elon Musk’s “controversial and exceptionally high” pay package and unspecified labor conditions.
ABP previously voted against Musk’s performance-based compensation, which has faced shareholder lawsuits and judicial scrutiny.
A Delaware judge recently invalidated the pay package, citing insufficient shareholder approval.
While Tesla’s Model Y remains popular in the Netherlands, European sales fell 15% in 2024.
ABP stated the divestment was not politically motivated despite Musk’s ties to the Trump administration.
One more problem was that the various milestones had projections for likelihood and time to completion, but what they presented to the shareholders was different than their internal projections.
So not only did they think some of these milestones were likely, they lied to shareholders about how likely they were to make the package seem more difficult to achieve.
I knew (but forgot) they thought the 1st one was likely and didn’t disclose it, was it others as well?
I forget the exact number, but it was the first few. Maybe 3?