A group of Tesla Inc. shareholders, including several US state investment employees, urged the company's board to make major changes in governance to improve the supervision of CEO Elon Musk.
In a letter sent Thursday to three Tesla
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board members, the shareholders said that Tesla's board should make a plan to update membership and set timelines for some board members to leave, including requirements. The letter also said that the board should permanently separate the positions of Chairman and CEO, both of which Musk has long held.
The requested measures will go beyond those required by Tesla's September agreement with the Securities and Exchange Commission to settle claims that Musk misled investors in August with tweets claiming that the automaker had funds to go privately. The settlement requires Musk and Tesla each to pay 20 million dollars, to step down as leader for three years, and that Tesla adds two new independent board members and establishes a system to monitor Mr. Musk's communications.
A tesla spokesman refused to comment on Thursday's letter.
The letter was sent by the CtW Investment Group, an affiliated fund, together with officials representing retirement funds in New York City, New York, Connecticut, Oregon and California. The group, which said that they collectively help monitor $ 774 billion in assets, also urged Tesla's board to adopt proxy access rights to allow long-term shareholders to nominate their own staff of directors.
An expanded version of this report is available at WSJ.com
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