In June, annual shareholder meeting was held, stock holder of Tesla Jing Zhao was submitted a proposal and the subject of this proposal is to replace the board’s chairman, Elon Musk with an independent director.
Elon Musk, the chief executive officer at Tesla, has been chairman of the board since 2004.
“Although the current leadership structure, in which the positions of Chairman and CEO are held by one person, could provide an effective leadership for Tesla at the early stage, now in this much more highly competitive and rapidly changing technology industry, it is more and more difficult to oversee Tesla’s business and senior management (specially to minimize any potential conflicts) that may result from combining the positions of CEO and Chairman,”
But board expressed negative vote against Zhao proposal. In its statement,
“The board says Tesla’s success surely would not have been possible without Musk”.