Stichting Pensioenfonds ABP, Europe's largest pension fund, has sold its entire €571 million ($585 million) stake in Tesla. The decision was partly driven by disagreements over CEO Elon Musk's compensation package. A spokesperson for ABP indicated that Musk's pay scheme was a significant factor in their decision to divest.
In addition to compensation concerns, ABP also considered other factors such as costs, returns, and responsible investment criteria when deciding to sell its Tesla holdings. Dutch media reports highlighted poor working conditions at Tesla as another reason for ABP's decision to exit its investment.
Last month, a Delaware judge dismissed Musk's record-breaking compensation package for Tesla, despite shareholder support for the amount. Musk has requested the judge to reconsider the ruling. Initially valued at $2.6 billion, the stock option plan had surged to $56 billion by the time of the judge's cancellation.
In June, ABP voted against Musk's compensation package, labeling it as "controversial and excessively high."
