Tesla: shareholders side with Musk, share price jumps
Electric carmaker Tesla saw its share price jump this week when investors sided with the company’s besieged board. In May, the world’s second-biggest proxy adviser sided with an individual shareholder that opposed the re-election of three directors and wanted the company to appoint an independent chairman. Tesla’s board disagreed, and wanted to keep technocratic celebrity, and Tesla founder, Elon Musk, in the top position. A few days ago, the company’s shareholders sided with the board “on all agenda items”.
Tesla’s share price has risen by 9% over the past five days
SOURCE: Yahoo Finance
Todd Maron, Tesla’s general counsel, spoke at the company’s annual meeting on Tuesday in Mountain View, California. He said that the board advised shareholders to keep Elon Musk in the role of both CEO and chairman, and to re-elect Antonio Gracias (Tesla’s lead independent director), Kimbal Musk (Elon’s brother, and a food industry entrepreneur) and James Murdoch (Twenty-First Century Fox Inc.’s CEO).
According to Institutional Shareholder Services and Glass Lewis. CtW Investment Group, a number of issues “including the missed model 3 production target” showed that the board has been “insufficient” in governing the business. As such, they backed an individual shareholder’s proposal to push for an independent chairman. However, for now, at least, Mr. Musk’s hold on his company seems stronger than ever. If Tesla’s share price is anything to go by, markets are interpreting that as a good thing.
Dominion holds Tesla in its Global Trends Luxury Fund.
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