Blackrock Supported Proposeal To Remove Elon Musk As Tesla Chairman

Photo by Heisenberg Media via Flickr

Yesterday, it was revealed that funds that are managed by Blackrock voted in favour of replacing Elon Musk, the billionaire founder of Tesla, with an independent chairman.

Funds that are held by the firm that is based in New-York supported a shareholder proposal to remove Musk as chairman. These were revealed in its filing with the US Securities and Exchange Commission.

Over 86 million shares voted against the failed motion at a shareholder meeting last June. It would not have affected the role of Musk as the firm’s chief executive. Reuters reported that fewer than 17 million voted in favour.

The said move would have had the role of chief executive and chairman divided in an attempt to improve the corporate oversight at the car firm, whose shares have been greatly affected amidst of the trigger-happy tweeting of Musk.

Tesla said that the day-to-day exposure of Musk to the business is essential for the success of the company.

A spokesperson from Blackrock told Reuters: “Blackrock’s approach to investment stewardship is driven by our fiduciary duties to our clients, the asset owners.”

He added: “Our approach to engaging with companies and proxy voting activities is consistent with our commitment to drive long-term shareholder value for our clients.”

Earlier this month, Musk came under fire when he alarmed investors by declaring on Twitter that he was considering taking the firm private.

The debate immediately centred on whether Musk had broken any laws in revealing that the firm had “secured funding” for its plans, which would have valued the shares of Tesla at $420. A subpoena has been issued by the US Securities and Exchange Commission (SEC) over the matter.

However, on Friday, Tesla announced that Musk would “no longer pursue a transaction for taking Tesla private.”

This week, the billionaire caused more headlines by doubling down on his ‘pedo guy’ comments regarding a British diver who was involved in the rescue attempt of the Thai boys who were stuck in a cave this summer.

It was later revealed that the diver is planning to sue the Tesla chief executive for libel.