Elon Musk will stay on as Tesla chairman despite attempted coup by investors after annual meeting vote
Tesla shareholders voted against a proposal to split Musk’s chairman and CEO jobs, and in favour of the re-election of three directors including Fox’s James Murdoch
Elon Musk will stay on as chairman of Tesla despite an attempt by a group of investors to oust him at an annual meeting in northern California on Tuesday.
Tesla shareholders voted against a proposal to split the chairman and chief executive jobs, both of which the billionaire holds, and in favour of the re-election of three directors, whose removal was also demanded by a group of investors.
Shareholders sided with the board’s recommendations on all agenda items, Todd Maron, Tesla’s general counsel, said, including re-electing Antonio Gracias, Tesla’s lead independent director; Kimbal Musk, a food industry entrepreneur and Elon’s brother; and James Murdoch, CEO of Twenty-First Century Fox Inc.
CtW Investment Group, which works with union pension funds, had urged shareholders to vote against all three directors, arguing that issues including missed Model 3 production targets showed the board has been insufficient in governing Musk, 46, and the company.
But the electric car maker’s stock was also up 1 per cent in extended trade after Musk said Tesla was on track to produce 5,000 Model 3 sedans per week by the end of June, in line with his previously stated goal.
An individual shareholder had also put forth a proposal that would have required an independent chairman, which was backed by proxy advisers Institutional Shareholder Services and Glass Lewis, but was ultimately voted down.