In a surprising move, ABP, the largest civil service pension fund in the Netherlands, has sold off its entire stake in Tesla (NASDAQ: TSLA). The reason? Dissatisfaction with CEO Elon Musk’s pay package, according to Dutch newspaper Het Financieele Dagblad.
ABP had 2.8 million shares in Tesla but decided to part ways with the electric vehicle giant over Musk’s $56 billion salary and the company’s poor working conditions. While the decision might raise some eyebrows, ABP made it clear that this wasn’t a politically-driven move. The fund wasn’t reacting to Musk’s role in the upcoming U.S. government under President-elect Donald Trump.
The controversy surrounding Musk’s pay is far from over. Just last month, a Delaware judge rejected his massive compensation package for a second time. Despite Tesla shareholders approving the pay deal in June 2024, Judge Kathaleen McCormick ruled that the approval process lacked transparency. She also pointed out that the Tesla board seemed to be too “beholden” to Musk, raising questions about the fairness of the entire arrangement.
It seems like this drama is far from over. But for now, ABP is keeping its distance from Tesla. What do you think about this decision? Let us know your thoughts!
