Tesla’s (NASDAQ:TSLA) Elon Musk Under Fire, Investors Revolt
Last Friday, proxy adviser Institutional Shareholder Services (ISS) recommended that investors vote against Tesla (NASDAQ:TSLA) directors Antonio Gracias and James Murdoch, increasing pressure on the EV maker over their roles on its board.
ISS also backed 2 shareholder proposals to be voted on at the company’s annual meeting set for 5 June including one that would require it to separate the current COB and CEO roles of founder Elon Musk.
“The complexity of large-scale manufacturing and the challenges of successfully commercializing new technologies and new manufacturing and marketing techniques suggest that shareholders would be better served by having Musk focus on running the company, and allowing an independent director to run the board,” according to a copy of ISS’ recommendations seen by Reuters.
The recommendations by the Top proxy adviser echo those made earlier this week by rival Glass Lewis, although ISS did side with Tesla and recommend investors vote for Mr. Musk’s brother and current director Kimbal Musk.
Union-affiliated activist CtW Investment Group has criticized the 3 Tesla directors up for election this year as being too close to Elon Musk or unqualified.
In its report, ISS wrote that Gracias, CEO of Valor Management Corp, is not sufficiently independent for key board committees. It also cited concerns regarding the lack of performance-based elements in Tesla’s pay plan in recommending the vote against Gracias, a compensation committee member.
ISS wrote that Mr. Murdoch is “overboarded” since he serves as the CEO of Twenty-First Century Fox Inc and on other boards.
ISS wrote Tesla’s proxy notes Jurvetson’s leave but not the background, and said that Tesla “shareholders should expect a greater degree of transparency from the company as to the reason he remains on leave” and about his future status.
PS: Facing heavy investor pressure
$TSLA CEO Elon Musk is now hyping 2 new performance versions of the M3, the EV that is intended to be the company’s 1st high-volume vehicle. There is no such think as a $78-K high volume car in the automotive world. PE
|NASDAQ:TSLA||276.82||18 May 2018||-7.72||284.65||284.65||274||7,251,800|
|HeffX-LTN Analysis for TSLA:||Overall||Short||Intermediate||Long|
|Bearish (-0.31)||Neutral (-0.23)||Bearish (-0.40)||Bearish (-0.31)|
Have a terrific week