Around Elon Musk the idea of incombustible worker Able to work more than 100 hours a week and even sleep In his office as TeslaTo save the bankruptcy. Proud of that image, the millionaire did not hesitate to demand the same to its employees.
A group of Tesla investors has sent a surprising request to the Board of Directors of the company: that Musk dedicate at least 40 hours a week to direct the company. This application comes in a Critical moment for Teslawith the company crossing one of its worst crises, according to its own shareholders and with the figure of Musk more questioned than ever.
Musk, focus. The debate on Musk’s commitment to Tesla has intensified after recent passage through politics. The signatory investors, among whom is the American Federation of Teachers, which has 7.9 million shares of Tesla, consider that its CEO has been too dispersed, and now require concrete measures to guarantee good governance and the Tesla stability.
In her letter addressed to Robyn Denholm, president of the Tesla Board of Directors, the shareholders indicated that “the external activities of Mr. Musk seem to have diverted their time and attention from the active management of Tesla’s operations, as would be expected of any other executive director of a company that is quoted in the stock market.” Musk itself confessed I could barely dedicate one day To direct your companies.
40 hours a week and three -day week. The investor letter sent to the Tesla Board of Directors, requests that any New remuneration plan For Musk, include the obligation to dedicate at least 40 hours per week to the company’s management.
Investors even suggest that Musk could group these hours in three days, leaving the other two to address their other business or political activities. “We just want to make sure that you can devote enough time to supervise and, in the case of executives, properly manage the company,” explained PATEL TABLE, EXECUTIVE DIRECTOR OF SOC INVESTMENT GROUP (one of the signatory investors) to Fortune.
A plan to replace CEO. Also, shareholders demand the elaboration of a clear succession plan for the CEO position. In this sense, investors do not propose the replacement of Musk as CEO as Yes they made their employees.
Its demand is to identify “emergency” successors that can assume the leadership of Tesla in case Musk is not available, with the objective of “incorporating a new person with the right skills to execute Tesla’s business plans.” Some plans that, on the other hand, the Board of Directors must make public with a strategic schedule between 2 and 5 years. In this way, Tesla would have a succession protocol preventing the company from being “delayed” before an unforeseen event.
Limitations for managers. In addition to asking for greater involvement from their CEO, investors also ask to limit the responsibilities of the members of the Tesla Board of Directors In other external companies.
With this measure they intend to restrict simultaneous positions of managers outside Tesla to avoid conflicts of interest and ensure that the management is fully Focused on the company. “For many years, the amount of time that CEO Musk has dedicated to the management of Tesla has been limited by its multiple private companies and other external activities,” says the letter. Therefore, they ask that the company’s maximum manager can only hold a managerial position outside of Tesla.
A BOARD FIELT TO TESLA. Investor requests do not focus only on the management of Musk, they also extend their criticisms to other members of their board of directors. They insist on the need to incorporate at least a “truly independent” vowel into the Board of Directors.
This person should not have links with other council members or Elon Musk to avoid nepotism and conflicts of interest personal among the members of the Board. This request arises after the appointment of Jack Hartung, former executive of Chipotle, as a member of the Tesla Board of Directors. Investors They were worried For the professional connection that Hartung and Kimbal Musk, brother of Elon Musk, have cultivated for years.
This petition seeks to eliminate servility when negotiating the salary remuneration of the Board of Directors so that the interests of the shareholders and Tesla over the personal ambitions of its members prevail. An example was the Salary Bonus Negotiation granted to Musk in 2018, by a board formed by friends, historical collaborators of Musk and even his own brother.
Image | Unspash (Mark Chan), Flickr (Gage Skidmore)
GIPHY App Key not set. Please check settings