Elon Musk wants Tesla shareholders to vote against eight things

Elon Musk wants Tesla shareholders to vote against eight things ...

Elon Musk, Tesla's chief executive (TSLA) - Get the Tesla Inc. Report,likes to present himself as a free-speech absolutist who supports active debate on key issues.

When things get closer to home, such as during the electric-vehicle manufacturers' annual meeting, that tone changes.

Tesla's annual meeting, which is scheduled for later this week, includes a number of stockholder proposals for consideration, eight of them.

They cover everything from initiatives to enhance shareholder proxy access, to reports on the board's diversity, to recognizing, or at least affirming, the rights to freedom of association and collective bargaining.

The one thing they all have in common is that the Musk and Teslas board of directors are against them.

Tesla's Core Mission

In the company's proxy statement, Tesla inserted this sentence:

The Board continues to oppose initiatives that seek to dictate Tesla's strategic business decisions and everyday operations in ways that are irrelevant to or in support of the company's core purpose."

"The Board considers all reasonable stockholder viewpoints in good faith, but ultimately must consider the interests of all of our stockholders and what is the best for sustainable value creation.

Certitude isn't something that is unusual or unique to Musk or Tesla.

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Corporations object to shareholder suggestions a lot. After all, they are contrary to the notion that corporate governance of the managers, by the managers, and for the managers will not savor the Earth.

Tesla is being pushed back by two key proxy-evaluation services that advise institutional investors on how to vote the shares they hold.

Tesla is being pushed back.

According to MarketWatch, both Institutional Shareholder Services and Glass Lewis are critical of Tesla's reelection of two members of the board of directors and are urging supporters to vote in favor of six of the shareholder proposals.

The inability of the board members to implement a measure approved at last years shareholder meeting to create a single board member who would be reelected every year has prompted their opposition.

The board of directors is currently broken up into three sections, one of which is up for election each year.

Tesla has made a proposal on its proxy for this year to reduce the board to two staggered classes, each serving two years.

Tesla wrote in a letter filed with the SEC this week that "even though the 2021 Declassification Proposal was approved by a majority of the shares entitled to vote and present in person or represented proxy," such votes represented only 31.4% of the outstanding shares on the record date for such meeting and would therefore have fallen far short of the supermajority threshold required to amend our certificate of incorporation.

Glass Lewis and ISS are urging shareholders to support shareholder proxy access; a report on Teslas lobbying efforts; a report on water hazards; and adopting policies regarding collective bargaining.

They took no position on proxy measures regarding annual reports on board diversity and child labor.

Tesla's annual meeting is scheduled for August 4, 2022 at 4:30 U.S. Central Time.

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