Tesla (NASDAQ:TSLA) to Shrink Board to 7 Directors from 11

Tesla (NASDAQ:TSLA) to Shrink Board to 7 Directors from 11

$TSLA

Friday, Tesla Inc (NASDAQ:TSLA) said that 4 members of its 11-member board would be leaving over the next 2 years, as the EV company looks to streamline its board.

Brad Buss, Antonio Gracias, Stephen Jurvetson, and Linda Johnson Rice will not be standing for re-election in the upcoming annual meetings of stockholders in Ys 2019 and 2020, the company said in a regulatory filing.

The company said its directors reviewed the composition of the board “focusing on a phased streamlining of the size of the Board to allow it to operate more nimbly and efficiently.”

Tesla said the decision did not result from any disagreement between the company and the directors.

Of the 4 members who would exit the board, Messrs Buss and Gracias were part of Tesla’s disclosure controls committee, overseeing the implementation of the terms of the consent agreement between Tesla and the SEC.

Mr. Buss was also the CFO of SolarCity for 2 years before retiring in Y 2016.

Mr. Gracias has been an independent director at Tesla since Y 2010. Last May, proxy adviser ISS recommended that investors vote against his election to the board and called him a non-independent director.

Mr. Jurvetson, the co-founder of Silicon Valley venture capital firm Draper Fisher Jurvetson, is said to be on a leave of absence from Tesla’s board since allegations of sexual harassment against him arose, he has denied the allegations against him.

The proposed changes in the board come just 2 weeks after Elon Musk’s position as CEO of Tesla was secured after a federal judge urged the billionaire to settle contempt allegations by the Securities and Exchange Commission over his use of Twitter.

HeffX-LTN’s overall technical outlook for TSLA is Very Bearish in here.

Have a Happy Easter Holiday weekend.

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