Institutional Shareholder Services opposes re-election of Tesla chairwoman

by SpeedLux
Institutional Shareholder Services Inc. (ISS)

Proxy adviser Institutional Shareholder Services Inc (ISS) has urged Tesla Inc shareholders to vote against the re-election of chairwoman Robyn Denholm at the electric automaker’s annual meeting next month.

The firm expressed concerns regarding Denholm’s leadership, mentioning consecutive years of high compensation for directors, without a reasonable rationale, and a steep increase in share pledging by certain Tesla directors and executives, during her reign.

Denholm, a company director for almost six years, has been the chairwoman since November 2018. She is also a member of the company’s audit and compensation committee.

“The significant amount of pledged shares raises concerns regarding the audit committee’s ability to effectively oversee risk at the company,” ISS said.

It said the aggregate number of pledged Tesla shares boosted by 35.6%, or about 4.9 million shares, during 2019, and represented 10.43% of outstanding shares with a value of about $7.9 billion.

“The percentage of outstanding shares that is pledged raise significant issues, which are exacerbated by the high degree of volatility in Tesla’s share price,” ISS said.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.


SpeedLux is a high-authority automotive blog providing the latest automotive news and reviews. SpeedLux covers everything related to cars, bikes, and motorcycles, from news and reviews, to troubleshooting guides, tips and tricks, and more. SpeedLux was born in 2009 and we have over 20,000 articles published on our blog. We thank all our readers, as well as our partners, without whom we could not have reached this level.


©2009 – 2024 SpeedLux – Daily Automotive News and Reviews. All Right Reserved.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More