Electric auto company Tesla on Friday announced four 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.
The company made the surprise announcement in an SEC filingthat posted late Friday, when markets were closed for the Easter Weekend and Passover Holiday. The move is part of 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 company said.
This would be single biggest change since the company went Ipo shrinking their board members from 11 to 7.
The board members are currently negotiating terms governing the chief executive’s use of public social-media platforms to make statements about Tesla.