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Tesla announces departure of four board members
Tesla disclosed on Friday that four members of its board of directors would depart at the end of their terms.
The four directors, Brad Buss, Antonio Gracias, Stephen Jurvetson, and Linda Johnson Rice said they will not seek reelection when their respective terms expire over the next two years, according to a proxy filing with the Securities and Exchange Commission (SEC).
The decision follows a review by Tesla's board and Nominating and Corporate Governance Committee of "the Board's composition, focusing on a phased streamlining of the size of the Board to allow it to operate more nimbly and efficiently, while maintaining new ideas, expertise and experiences on the Board," the filing said.
Tesla referred The Hill to a proxy statement that said, in part, that there had been a "significant increase in the size of the Board from seven to 11 directors in the past five years" and a "duplication of certain areas of experience or expertise on the Board."
The statement also said the board hoped to retain "directors with the current professional and personal wherewithal to devote a greater degree of time and focus than may be expected of other public company board members" and achieve "a model of diversity wherein each director offers an expertise and background that is unique to him or her on the Board."
Tesla came under SEC scrutiny last year after CEO Elon Musk tweeted that he planned to take the company private at $420 per share. The agency later sued Musk, alleging that he committed securities fraud. Musk later reached a settlement with the SEC.
Earlier this month, a judge ordered Musk to settle another dispute with the SEC after the agency accused him of violating the settlement, according to The Washington Post.