Elon Musk must be fired as Tesla CEO, shareholders say as company struggles
As Tesla struggles, many shareholders are looking to oust Elon Musk and three of the board’s directors – but they’ll have a fight on their hands
With Tesla in trouble, some investors think it’s time to shake up the board of directors: on Tuesday, shareholders will vote whether to replace Elon Musk as board chairman and dump three directors.
The campaign to reform the board has been spearheaded by CtW Investment Group, a specialist in managing union-sponsored pension funds.
Tesla says Brussels driver didn’t have Autopilot on when he crashed
In a written argument to shareholders, CtW said Tesla’s “strategic and operational challenges” and “deteriorating financial performance” warrant a major change on the board of directors, and the board has been “unduly deferential” toward Musk.
Corporate governance advisory group Glass Lewis is advising shareholders to vote no for three Tesla board members up for reelection: 21st Century Fox CEO James Murdoch; venture capitalist Antonio Gracias; and Musk’s younger brother, Kimbal.
Glass Lewis also supports a nonbinding resolution to appoint an independent board chairman to replace Musk, with Musk keeping his job as CEO.
