The Dallas Morning News
Tesla urged to add 2 independent directors
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.”