Tesla directors get softer support, shareholder proposal gains traction

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:Electric carmaker Tesla Inc on Wednesday reported lower support than usual for two directors at its recent shareholder meeting, and greater support for a call to review the company's use of mandatory arbitration after a court decision in favor of a temporary employee who accused Tesla of racial discrimination.

In a securities filing Tesla said support for a shareholder resolution on how it handles arbitration matters rose to 46per cent of votes cast at its annual meeting last week, from 27per cent for a similar proposal in 2020. Both directors up for election this year also received less support than any did last year.

Tesla had opposed the resolution, arguing arbitration can benefit both parties of a dispute. The company did not immediately comment on the shareholder vote. Kristin Hull, CEO of Nia Impact Capital who filed the resolution, called the higher support this year"a huge improvement as we educate folks on why this matters for building an innovative team with a diverse and inclusive company culture."

Another measure tied to racial issues won a majority of support, with 57per cent of votes cast. Filed by Calvert Research and Management the measure asked Tesla to report in detail on its diversity and inclusion efforts. Tesla had opposed the measure, citing current and future reporting plans.

 

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