Elon Musk’s potential $56 billion pay bundle was the rationale Europe’s largest pension fund offered its total Tesla $TSLA stake not too long ago, because the agency offered all of its $585 million price of shares.
A spokesperson for Stichting Pensioenfonds ABP mentioned to Bloomberg that “We had an issue” with Musk’s pay bundle, which remains 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 12 months. 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 towards Musk’s pay bundle.
A Dutch newspaper generally known as Het Financieele Dagblad first reported the story but in addition listed Tesla’s working circumstances as a purpose to promote its stake in Tesla.
🚨 ‘WE HAD A PROBLEM’: Europe’s largest pension fund, Stichting Pensioenfonds ABP, offered its total 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 attention-grabbing, to say the least. Decide McCormick denied the pay bundle as soon as once more in December, and Tesla appealed the ruling. It’s exhausting to see what is going to change the Decide’s thoughts at this level, particularly as she has already dominated towards it twice.
Some imagine Musk will nonetheless get the pay bundle a method or one other. Wedbush’s Dan Ives wrote to buyers in December:
“We proceed to imagine Tesla and Musk will combat this tooth and nail all the best way 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 might 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 may be very eye opening to public Boards across the nation and go towards shareholders vote in a harmful precedent in our view.”
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