Tesla is slimming the Board member composition, as the company said four of the current members would leave the board in the next two years. Tesla is planning to streamline its board for better control and less division of vote on the decisions. Due to this decision, the company will have Seven board members in the next two years instead of eleven, which is the current number of members. Amongst the current members, Brad Buss, Antonio Gracias, Stephen Jurvetson, and Linda Johnson Rice will not stand for re-election, which will be held in the annual shareholders meeting of 2019-2020.
Tesla announced these details in the regulatory filings with the American authorities. According to the filings, Tesla directors reviewed the composition and decided to trim it down for better functioning of the company with fewer board members. Thankfully, the decision has been taken with mutual consent of the board members, and there is no disagreement between the members regarding company operations. Two of the leading members, Buss and Gracias were handling the compliance and the communication between the SEC and Tesla. They will continue managing the same task even after exiting the board.
It’s been a few weeks since the federal judge advised CEO Elon Musk to settle contempt allegations by the U.S. Securities and Exchange Commission for his excessive and irresponsible use of Twitter. The decision to shrink the board size came just a few weeks after this advice from the federal judge. SEC always had the beef with Elon Musk over his excessive use of Twitter. Almost a year ago, SEC sued Elon Musk, and he settled the lawsuit by accepting the terms of getting the company’s material information pre-attested by the attorneys before posting them on Twitter. But recently, he broke the settlement by posting about the tesla’s production without pre-attesting the data from company lawyers.
