Tesla shareholders want Elon Musk out as company CEO

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Tesla shareholders

Shareholders will be voting on whether to remove Musk and three directors at some point today.

Tesla shareholders are starting to get antsy when it comes to the profitability of the company. While the company is doing some cool things with electric vehicles, Tesla shareholders want to see financial results. Shareholders will be voting on whether to remove Elon Musk as the *board chairman and three directors at some point today.

The campaign to reform the board has been spearheaded by CtW Investment Group, a specialist in managing union-sponsored pension funds.

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.

ISS recommends a yes vote on removing Elon Musk as chairman. That proposal was put forth by shareholder activist Jing Zhao, who said: “I believe a big company cannot depend totally and so heavily on one person.”

This should be an interesting shareholders meeting today. Elon Musk has a lot of support among consumers and many media outlets. But it’s the shareholders who are investing money into the company and it’s their voices that will ultimately be heard. Whatever Tesla shareholders decide, hopefully, it won’t adversely affect the work that the company is doing with electric vehicles.

What do you think about some shareholders wanting to replace Musk as CEO? Do you think Elon Musk will be voted out? How do you think Tesla will become profitable? Let us know your thoughts in the comments below or on Google+, Twitter, or Facebook.

  Source: SCMP
*We corrected this article to reflect the vote was to oust Musk as chairman, not CEO.
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