A Dutch civil service pension fund sold its entire stake in Tesla over disapproval of CEO Elon Musk’s pay package and working conditions at the company.
Stichting Pensioenfonds ABP, one of Europe’s largest pension funds, sold 2.8 million shares in the electric vehicle maker in September because it disagreed with Musk’s pay package, Dutch outlet Het Financieele Dagblad reported Friday. The report did not detail the fund’s specific concerns about labor conditions at the company.
A spokesperson for ABP, which manages $552 billion overall, did not immediately respond to a request for comment. Bloomberg reported that ABP’s Tesla stake was valued at about $585 million.
In a statement to the NL Times, ABP said “we cannot and do not need to invest in everything,” and that the divestment was not politically motivated. Musk has been a prominent supporter of President-elect Donald Trump, and is co-leading a commission called the Department of Government Efficiency.
In 2018, Tesla’s board and shareholders voted in favor of a performance-based compensation plan. The same year, a shareholder sued Tesla and Musk, arguing that Musk influenced the board’s decision through his personal relationships with board members, including his brother. In January 2024, a Delaware judge ruled to strike down Musk’s compensation package, siding with a shareholder. The stock option-based package could be worth tens of billions of dollars.
In June, the EV maker held a second vote, which led to shareholder approval of Musk’s pay. ABP voted against the pay package and called it “controversial and exceptionally high.”
Last month, the judge, Chancellor Kathaleen St. J. McCormick, once again ruled against the compensation package, saying that Tesla’s June shareholder vote wasn’t enough to pass the package.
Tesla’s Model Y was the best-selling car in the Netherlands in 2024, but the carmaker’s sales have been declining in Europe. New Tesla car registrations from January to November 2024 fell over 15% compared to the same period in 2023, according to European Automobile Manufacturers Association data.
Tesla is worth about $1.27 trillion and its stock has risen about 74% in the past year.
The company did not immediately respond to a request for comment.
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