Europe's largest pension fund, Stichting Pensioenfonds ABP, announced the sale of its entire stake in Tesla (TSLA, Financial), valued at 571 million euros. The key reason cited for this decision is disagreement with CEO Elon Musk's compensation plan, which ABP considers problematic. An ABP spokesperson highlighted that the pay package was a significant factor during their assessment of Tesla's investment value.
Last June, ABP voted against Musk's pay proposal, labeling it controversial and excessive. Though shareholders initially supported the compensation, and Musk sought judicial reconsideration, a Delaware judge recently dismissed the record-setting pay package. Initially valued at $2.6 billion, the stock options had surged to $56 billion before being invalidated by the court.
This development led to significant pre-market volatility for Tesla, with shares declining by 3.09% at a specific point in time.
