Tesla on Friday announced four members of its board of directors will leave their posts once their terms have ended.
Brad Buss and Linda Johnson Rice will not pursue reelection to the board at Tesla’s stockholders’ meeting this June. And in 2020, Steve Jurvetson’s tenure will officially end. Jurvetson has been on leave following accusations of sexual misconduct at his venture-capital firm Draper, Fisher, Jurvetson in 2017.
A fourth independent director, Antonio Gracias, will also bow out in 2020 if Tesla stockholders approve a proposal to reduce director terms from three years to two. If that proposal fails, Gracias would exit in 2021, the electric-car maker said.
Tesla’s board of directors has grown from seven to 11 members in the last five years. The company said the new changes would “streamline” the group and “allow it to operate more efficiently and nimbly.”
One of the goals, according to Tesla, is 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.”
This latest shuffle comes amid what has already been a turbulent year for Tesla and CEO Elon Musk, who has repeatedly locked horns with the Securities and Exchange Commission (SEC).
The parties are negotiating the terms governing the chief executive’s use of public social-media platforms to make statements about Tesla.
Those talks stem from a dispute over previous statements Musk has made online that federal regulators say contained material information about Tesla that were not vetted internally before publication or contradicted facts and figures already shared with investors.
A judge on Thursday granted Musk and the SEC more time to complete their latest round of negotiations.