Stichting Pensioenfonds ABP, Europe’s largest pension fund, has divested its entire €571 million ($585 million) stake in Tesla Inc., citing concerns over CEO Elon Musk’s remuneration package as one of the key factors behind the decision.
ABP’s spokesperson confirmed the fund’s dissatisfaction with Musk’s pay package, describing it as “controversial and exceptionally high.” The package, initially valued at $2.6 billion and later soaring to $56 billion, was invalidated by a Delaware judge last month despite previous shareholder support and Musk’s request for reconsideration.
In June, ABP had publicly voted against the package, aligning with its stance on responsible investment practices.
In addition to Musk’s compensation, ABP cited other factors influencing its decision, including financial costs, returns, and compliance with its responsible investment standards. Dutch newspaper Het Financieele Dagblad reported that poor working conditions at Tesla were also a consideration for the pension fund.
The decision to exit its Tesla investment underscores ABP’s commitment to balancing financial performance with ethical considerations in its portfolio. The divestment marks a significant move by one of Europe’s most influential institutional investors, potentially signaling increased scrutiny of executive pay and workplace conditions in the corporate world.
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