Photo: Instagram/Elon Musk
Elon Musk has been running Tesla up and down the automotive industry lanes ever since 2004. The man is also the chief executive officer of the company which, some say, might cause conflict of some sorts.
Tesla’s shareholders are to meet in the beginning of June to get up to speed with Musk’s latest exploits and have a say on the future direction of the company. Included on the to-do list is the reelection of three board members and, says Electrek, a proposal to remove Musk as chairman of the company.
This proposal was made by a man called Jing Zhao, who owns a whooping 12 shares in the company, the source says. By comparison, Elon Musk holds some 37.8 million shares of the automaker.
Still, the man does envision a more powerful and at the same time secure future for Tesla, one in which the carmaker is led by an independent director. Such a person would protect Tesla against any potential governance issues arising from a non-independent director being chairman.
“An independent chairman of the board of directors is the prevailing practice in the international market, such as in the United Kingdom,” said Zhao in a statement cited by the source.
“In the United States too, many big companies already have or began to have an independent Board Chairman. Tesla should not be exception.”
On Thursday, Tesla’s board of directors recommended that the shareholders vote against the proposal, saying that it already has seven independent directors and complies with majority practice.
The joggling Musk keeps doing with the companies he has stakes in has caused dissatisfaction before. He is currently CEO of SpaceX, Tesla, Neuralink and The Boring Company.
He was also CEO of OpenAI, a position he left to avoid potential future conflict with his role as CEO of Tesla, a company also engaged in AI research.
This proposal was made by a man called Jing Zhao, who owns a whooping 12 shares in the company, the source says. By comparison, Elon Musk holds some 37.8 million shares of the automaker.
Still, the man does envision a more powerful and at the same time secure future for Tesla, one in which the carmaker is led by an independent director. Such a person would protect Tesla against any potential governance issues arising from a non-independent director being chairman.
“An independent chairman of the board of directors is the prevailing practice in the international market, such as in the United Kingdom,” said Zhao in a statement cited by the source.
“In the United States too, many big companies already have or began to have an independent Board Chairman. Tesla should not be exception.”
On Thursday, Tesla’s board of directors recommended that the shareholders vote against the proposal, saying that it already has seven independent directors and complies with majority practice.
The joggling Musk keeps doing with the companies he has stakes in has caused dissatisfaction before. He is currently CEO of SpaceX, Tesla, Neuralink and The Boring Company.
He was also CEO of OpenAI, a position he left to avoid potential future conflict with his role as CEO of Tesla, a company also engaged in AI research.
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