Tesla shareholder presses board to appoint independent chairman

Tesla Inc. shareholders will vote in June on whether to adopt a policy that the company only allow an independent director to be chairman, a role Elon Musk has held since 2004.The proposal, by Jing Zhao of Concord, Calif., argues Tesla shouldn't be an exception to what the individual shareholder called the "prevailing practice" in markets including the U.K.The owner of 12 Tesla shares wrote this would minimize conflicts and brought up the acquisition of SolarCity Corp., a deal criticized in part because of Musk's links to the unprofitable panel installer.Tesla's board is recommending that shareholders vote against the proposal, saying lead independent director Antonio Gracias protects the company against any potential governance issues arising from having a non-independent chairman.In an SEC filing, the board also stated that its structure is consistent with majority practice at large public companies and it has seven independent directors."The company's success to date would not have been possible if the board was led by another director lacking Elon Musk's day-to-day exposure" to Tesla's business, the board wrote in its proxy statement.Tesla is to hold its 2018 annual meeting of stockholders on June 5.Reuters contributed to this report.

Tesla shareholder presses board to appoint independent chairman

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