Proxy advisory firm Institutional Shareholder Services recommended that Tesla Inc. shareholders vote against directors Antonio Gracias and James Murdoch at the June 5 annual meeting, Reuters reported.
As CEO of investment advisory firm Valor Management Corp., ISS said Gracias is not sufficiently independent to hold a position in key board committees. It called Murdoch "overboarded" due to his role as the CEO of 21st Century Fox Inc. and on other boards. The proxy advisory firm recommended a vote in favor of Kimbal Musk.
ISS also supported a shareholder proposal that calls for Tesla to separate the chairman and CEO roles of founder Elon Musk. The proxy advisory firm thinks shareholders would be better served if Musk focused on running the company and an independent director ran the board.
A similar recommendation was made previously by Glass Lewis.