Tesla directors get softer support and shareholder proposals gain traction

Electric car maker Tesla uses compulsory arbitration of the company on Wednesday after a court decision in favor of a temporary employee who accused Tesla of racial discrimination, with less than usual support for two directors at a recent shareholders’ meeting Reported that there was great support for the call to consider. ..

The vote showed growing shareholder dissatisfaction with the company.

Tesla said in securities filing that support for shareholder resolutions on how to handle arbitration issues rose from 27% of similar proposals in 2020 to 46% of votes cast at last week’s annual meeting. There was less support than last year.

A non-binding resolution on arbitration called on Tesla’s board to investigate the implications of using compulsory arbitration to resolve workplace complaints about harassment and discrimination. The issue received even more attention last week after awarding a $ 137 million jury award to Tesla’s contract workers for workplace racism.

Tesla opposed the resolution, arbitrating that arbitration could benefit both parties to the dispute. The company did not immediately comment on the shareholder vote.

Other technology companies, such as Uber Technologies Inc and Google’s parent company Alphabet Inc, have reduced or eliminated forced arbitration. In April, nearly half of Goldman Sachs Group Inc’s shareholders agreed to consider using forced arbitration by banks.

Kristin Hull, CEO of Nia Impact Capital, who submitted the resolution, said this year’s higher support was “by educating people why this is important to build an innovative team with a diverse and comprehensive corporate culture. It was called “a big improvement.”

According to the power of attorney, Tesla CEO Elon Musk owns a 23% stake in Tesla.

Another measure related to racial issues won the majority of support, with 57% of the votes cast. The bill, submitted by Calvert Research and Management, called on Tesla to report in detail on its diversity and inclusive efforts. Tesla opposed this measure, citing current and future reporting plans.

Wednesday’s submission was shown between the directors of the two companies re-elected last week, with James Murdoch receiving support from 70% of the votes and Elon Musk’s brother Kimbal Musk from 80% of the votes. Received support.

Directors of large US companies typically receive over 90% support. At Tesla, “the candidate for director in question needs to think a lot about the quality of oversight and how it can be communicated to the market,” said Francis Byrd, corporate governance consultant at Alchemy Strategies Partners. I am.

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Tesla directors get softer support and shareholder proposals gain traction

Source link Tesla directors get softer support and shareholder proposals gain traction

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