Tesla Board To Vote On Elon Musk’s Position As Tesla Chairman.
Electric car company Tesla is under a lot of scrutiny after several controversies, including a large Model S recall and the investigation of its factory in Palo Alto CA. This years Annual Meeting of Stockholders event, scheduled for June, will allow shareholders to vote on a range of different proposals on the company. Such as re-electing board members and consenting to Tesla’s public accounting firm. The most shocking proposal however, is one that suggests swapping Chairman of The Board Elon Musk with an independent party.
Jing Zhao, an owner of 12 Tesla shares from Concord, CA put the proposal together. He is a well-known shareholder activist who has previously pushed other proposals at companies, like Apple and IBM. His proposal states that Musk’s SolarCity and SpaceX projects may not allow him to remain distanced from personal interests. According to Zhao:
“An independent chairman of the board of directors is the prevailing practice in the international market, such as in the United Kingdom. In the United States too, many big companies already have or began to have an independent Board Chairman. Tesla should not be exception.”
Meanwhile, Tesla’s board suggests shareholdings vote against Zhao’s suggestion. Stating, “the Company is still at a point in its development where we must execute well in order to realize our long-term goals, separating the roles of Chief Executive Officer and Chairman at this time would not serve the best interests of the Company or its stockholders”. We’ll keep you posted as more of this story develops. For more automotive news, Tesla Will Build Its Own AI Hardware.