Larry Ellison will not return to Tesla’s board of directors, the automaker said yesterday in a 14A filing with the SEC.
In the filing, which was released on June 10, Tesla announced that Larry Ellison, a board member and close friend of CEO Elon Musk, would step down.
“In June 2022, Lawrence J. Ellison, a Class III director, decided collectively with the Nominating and Corporate Governance Committee and the Board that he would not stand for re-election to the Board when his current term ends. at the 2022 annual meeting, “Tesla says in the file. “The board currently plans to reduce the number of board seats to seven when Mr. Ellison’s term expires at the 2022 annual meeting, and therefore votes or proxies cannot be submitted for the board. ‘election of more than two council seats.’
In December 2018, Ellison not only invested $1 billion in Tesla stock, but was also elected to the board. Even before his billion dollar investment in Tesla in 2018, Ellison was known to be good friends with Musk. Ellison was even one of Musk’s backers in his purchase of Twitter, bringing in $1 billion. Ellison has no other public ties to other automakers, or any companies related to them. The connection to Musk has certainly proven fruitful for Ellison, as since his investment in Tesla, the value of his holdings has increased by more than 400%.
According to the filing, Ellison owns 15,290,975 shares, which equates to a 1.5% stake in the automaker.
Currently, it is still unclear why the executive chairman of Oracle chose to leave Tesla’s board of directors. However, the company holds his position and resume in high regard, stating:
“We believe Mr. Ellison has specific attributes that qualify him to serve on the board, including his long-term leadership of one of the world’s most successful technology companies and his experience in development and strategy. technological products.”
Ellison will leave board members Kimbal Musk, Hiro Mizuno, James Murdoch, Robyn Denholm, Ira Ehrenerpis and Kathleen Wilson-Thompson.
Tesla also announced that it would conduct a 3:1 stock split in the filing.
Disclosure: William Johnson is not a shareholder of TSLA.
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