A few weeks ago, Tesla signed Elon musk on the role of CEO for another ten years. Since then, the electric vehicle company went through a series of setbacks, and when shareholders will convene for a regular meeting in June, they will ask for the Mask to leave the post of Chairman of the Board of Directors. To the vote the proposal was put by the owner of 12 shares of Tesla, named Jing Zhao from Concord. He is a famous activist shareholders, who had previously made proposals against candidates in various companies such as Apple and IBM.
Zhao argues that combining the roles of Chairman and CEO could be useful in the early stages of the development of Tesla, but not now when the company has matured. He cited the example of the employment of the Mask in SolarCity and SpaceX, to emphasize why Musk can not be an independent Chairman of the Board of Directors.
“Chairman of the Board of Directors is the most common practice in the international market, for example, in the United Kingdom. In the United States, many companies also already have or had an independent Chairman of the Board. Tesla should not be an exception.”
After this proposal was followed by a statement from the Board of Tesla, which was suggested disagreement with the need for an independent Chairman. The Board decided that the “lead independent Director protects the company from any potential management problems arising from non-independent Directors, acting as the Chairman of the Board”. In addition, the “daily work Mask” is the secret of success of the company.
It seems unlikely that the Council would vote against the Mask, and it is unlikely he will step down as CEO, i.e. CEO. His contract essentially allows him to become chief Executive by the chair, and then he will decide who will be the new CEO. Financial harmony in the Board of Directors is very important for Tesla, because Musk promised to take the company into profitability in 3-4 quarter of 2018.