Connect with us

Hi, what are you looking for?

Stock

Tesla directors get softer support, shareholder proposal gains traction

Stock Markets10 minutes ago (Oct 13, 2021 07:00PM ET)

(C) Reuters. FILE PHOTO: The TESLA logo is seen outside a dealership in the Brooklyn borough of New York City, U.S., April 26, 2021. REUTERS/Shannon Stapleton/File Photo

By Ross Kerber and Hyunjoo Jin

(Reuters) -Electric carmaker Tesla (NASDAQ:TSLA) Inc on Wednesday reported lower support than usual for two directors at its recent shareholder meeting, and greater support for a call to review the company’s use of mandatory arbitration after a court decision in favor of a temporary employee who accused Tesla of racial discrimination.

The votes indicated growing shareholder dissatisfaction at the company.

In a securities filing Tesla said support for a shareholder resolution on how it handles arbitration matters rose to 46% of votes cast at its annual meeting last week, from 27% for a similar proposal in 2020. Both directors up for election this year also received less support than any did last year.

The nonbinding resolution on arbitration had asked Tesla’s board to study the impact of its use of mandatory arbitration to resolve workplace complaints of harassment and discrimination. The issue drew more focus after a jury award of $137 million to a Tesla contract worker last week over workplace racism.

Tesla had opposed the resolution, arguing arbitration can benefit both parties of a dispute. The company did not immediately comment on the shareholder vote.

Other technology companies have scaled back or eliminated mandatory arbitration including Uber Technologies (NYSE:UBER) Inc and Google parent Alphabet (NASDAQ:GOOGL) Inc. In April, nearly half of Goldman Sachs Group Inc (NYSE:GS) shareholders voted in favor of examining the bank’s use of mandatory arbitration.

Kristin Hull, CEO of Nia Impact Capital who filed the resolution, called the higher support this year “a huge improvement as we educate folks on why this matters for building an innovative team with a diverse and inclusive company culture.”

Tesla CEO Elon Musk owns 23% of Tesla’s shares, according to its proxy statement, meaning the measure would have passed aside from his votes, Hull said.

Another measure tied to racial issues won a majority of support, with 57% of votes cast. Filed by Calvert Research and Management the measure asked Tesla to report in detail on its diversity and inclusion efforts. Tesla had opposed the measure, citing current and future reporting plans.

Wednesday’s filing showed among the two company directors up for re-election last week, James Murdoch received support from 70% of votes cast, and Kimbal Musk, Elon Musk’s brother, received support from 80% of votes cast.

Directors at large U.S. companies typically receive 90% support or more. At Tesla, “the director nominees in question should do some heavy thinking about the quality of their oversight and how they/the company can better communicate that to the market,” said corporate governance consultant Francis Byrd of Alchemy Strategies Partners.

Tesla directors get softer support, shareholder proposal gains traction

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Uncategorized

Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt.

Uncategorized

Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione.

Uncategorized

Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem eum.

Uncategorized

Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora.

Disclaimer: Buzzclever.com it's managers and its employees (collectively "The Company") do not make any guarantee or warranty about what is advertised or above. Information provided by this website is for research purposes only and should not be considered as personalized financial or health advice. Copyright © 2021 Buzz Clever. All Rights Reserved