Elon Musk’s potential $56 billion pay bundle was the rationale Europe’s largest pension fund offered its whole Tesla $TSLA stake just lately, because the agency offered all of its $585 million value of shares.
A spokesperson for Stichting Pensioenfonds ABP mentioned to Bloomberg that “We had an issue” with Musk’s pay bundle, which continues to be in limbo after it was dominated to be unreasonable by Delaware Chancery Courtroom Decide Kathaleen McCormick.
The large $56 billion was voted in by Tesla shareholders on two separate events, as soon as in 2018 and one other final yr. The second vote for the pay bundle to be given to Musk adopted an preliminary ruling from Decide McCormick that invalidated the $56 billion.
Stichting Pensioenfonds ABP was one shareholder that voted in opposition to Musk’s pay bundle.
A Dutch newspaper often known as Het Financieele Dagblad first reported the story but additionally listed Tesla’s working situations as a purpose to promote its stake in Tesla.
🚨 ‘WE HAD A PROBLEM’: Europe’s largest pension fund, Stichting Pensioenfonds ABP, offered its whole stake in Tesla $TSLA, an estimated $585 million as a result of it “had an issue” with @elonmusk‘s $56bn pay bundle.
It additionally offered due to “prices, potential inventory return, and… pic.twitter.com/tR78hX0p3S
— TESLARATI (@Teslarati) January 14, 2025
The timing of the sale is fascinating, to say the least. Decide McCormick denied the pay bundle as soon as once more in December, and Tesla appealed the ruling. It’s onerous to see what’s going to change the Decide’s thoughts at this level, particularly as she has already dominated in opposition to it twice.
Some imagine Musk will nonetheless get the pay bundle a technique or one other. Wedbush’s Dan Ives wrote to traders in December:
“We proceed to imagine Tesla and Musk will battle this tooth and nail all the way in which to the Supreme Courtroom in Delaware after which doubtlessly to the Federal system as this stays a irritating headache for Tesla, Musk, and its shareholders. We additionally imagine this case may very well be the catalyst for extra public corporations to go away the state of Delaware for his or her company standing because the authorized precedents set on this Tesla/ Musk case could be very eye opening to public Boards across the nation and go in opposition to shareholders vote in a harmful precedent in our view.”
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