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• The group expressed concern over the shrinkage of Tesla’s board size
Activist investors SOC Investment Group have asked federal financial regulators to investigate Tesla (NASDAQ: TSLA) over plans to shrink the size of its board from eight to seven members and close one slot for an independent director.
In a June preliminary proxy filing, Tesla announced that Oracle Corporation founder Larry Ellison would not seek re-election for his board of directors seat at the annual shareholder’s meeting. Tesla has decided to reduce the size of its board by one seat, eliminating the slot for an independent director to serve on the company’s board.
SOC’s research director Rich Clayton told CNBC that if Tesla’s board size is decreased, there will be no independent review on the board and the company will continue to run based on Musk's interests.
Clayton said: “The board has repeatedly made decisions, not in the long-term best interests of Tesla, but driven by Elon Musk’s personal interests.”
SOC's letter to the securities regulator mentions that shareholders have suffered due to Musk’s actions.
Source - CNBC
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