The Dallas Morning News

Tesla urged to add 2 independen­t directors

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An influentia­l group of investors is pressing Tesla Inc. to add two board directors who don’t have ties to Elon Musk, a sign that concerns over the electric-car maker’s corporate governance remain as its shares soar.

Five of Musk’s six fellow board members have personal or profession­al connection­s to the Tesla chief executive, which could jeopardize their independen­ce, the California State Teachers’ Retirement System and four other investors wrote in a letter Monday to Tesla’s lead independen­t director. The managers of a combined $721 billion in assets also are pushing for yearly director elections, rather than votes staggered every three years.

“Directors should be held to a higher standard of independen­ce, given the conflicts of interest that permeate this board,” the letter to Tesla director Antonio Gracias said. “A thoroughly independen­t board would provide a critical check on possible dysfunctio­nal group dynamics, such as groupthink.”

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