Tesla Inc. Scheduled a shareholders’ meeting for a plant in Fremont, California, on October 7, calling for a reduction in the term of office of its executives among the proposals the electric car manufacturer is putting on the table, the company said late Friday night. .
One of the proposals calls for the term of office of each director to be reduced from three to two years. Tesla’s
The board currently has nine members, divided into three classes for three years.
However, if the proposal is approved, the board will be divided into two classes for a two-year term, with directors split as evenly as possible between classes, Tesla said. submission.
The board will be reduced to eight members because Antonio Gracias, a venture capitalist who has served on Tesla’s board since 2007, said in 2019 that he would not run for re-election this year at the end of his term.
Tesla’s board appointed current board members James Murdoch, the youngest son of News Corp
Rupert Murdoch, founder, and Kimbal Musk, brother of CEO Elon Muski, who will be re-elected as Class II directors and their term of office will expire in 2024. If the reduction is approved, their terms will expire in 2023.
The restriction of the terms of the members of Tesla’s Management Board was a response to the shareholders’ proposal, which invited each member of the Management Board to be elected for one year.
However, the two-year term “strikes the right balance between the long-term interests and short-term responsibilities of our shareholders,” Tesla said.
After the end of the normal trading day, Tesla’s shares remained 0.7% lower after the normal trading day. The stock has risen 1.6% this year, compared to a rise of about 19% in the S&P 500 index.