Shareholders of Tesla Inc. will vote in June on whether to adopt a policy stating that the company has only one Independent Director as Chairman, a role Elon Musk has held since 2004.
The proposal by Jing Zhao of Concord, California, argued Tesla should be no exception to what the single shareholder called the "prevailing practice" in markets including Britain. The owner of 12 Tesla shares wrote this would minimize conflicts and brought about the acquisition of SolarCity Corp., a Deal partly criticized for Musk's links with the loss-making panel installer.
Tesla's Board recommends that shareholders vote against the proposal, saying that independent executive director Antonio Gracias protects the company from possible governance issues with non-independent chairman.
"The company's success so far would not have been possible if the board were headed by another director, Elon Musk & # 39; sd" day by day "over Tesla's deal, the board wrote in its proxy statement.