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Tesla Shareholders Reject Bid To Strip Musk Of Chairman Role
AppleMagazine
|June 8, 2018
Tesla CEO Elon Musk has rebuffed a shareholder attempt to overhaul the electric car maker’s board and strip him of his role as chairman, despite worries about the company’s shaky finances and inability to meet its production goals for its first mass-market sedan.
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All three directors seeking to remain on Tesla’s nine-member board were re-elected during the company’s annual meeting held Tuesday in Mountain View, California.
Directors Antonio Gracias, James Murdoch and Elon’s brother, Kimbal Musk, won by “a wide margin,” according to Tesla. CtW Investment Group, an activist firm that represents labor union pension funds, had spearheaded a rebellion seeking to oust the trio from the board on the grounds that they didn’t know about the auto industry at a critical time in Tesla’s existence.
The company said a “supermajority” of shareholders also rejected a proposal to force Musk to step down as Tesla’s chairman, a position he has held since 2004 — four years before he also assumed the CEO job.
The precise voting totals will be disclosed within the next few days.
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