Thursday, February 22

Tesla Cuts Out Board Members, Confidants Elon Musk

Tesla Cuts out Board members, confidants Elon Musk. Tesla is going to reduce the number of board members from eleven to seven.

With this, the company expects to improve operational management.

Three members who belong to a core group around director Elon Musk will not stand for election again.

The electric car manufacturer emphasises that the decision is not an outcome of a disagreement,

but a “phased form of the size of the administration so that it can operate more aggressively and efficiently”.

Board members Brad Buss and Linda Johnson Rice will not stand for election again at the shareholders’ meeting in June.

The same concerns to Stephen Jurvetson and Antonio Gracias when their term of office expires next year.

Buss, Jurvetson and Gracias, in particular, are closely associated with Musk.

Jurvetson and Gracias are also on the board of Musks space company SpaceX.

Buss and Gracias are members of a committee that oversees the agreements between Musk and stock market watchdog SEC about its statements on Twitter.

Tesla also intends to adjust the appointment policy.

Board members are then no longer elected for three, but two years.

The electric car manufacturer also wants to fix the ‘Supermajority Amendment’ so that a two-thirds majority of shareholders,

is no longer needed to implement significant changes in the company.

A simple majority would then suffice.

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