Shareholder support increases for Tesla arbitration review


Automaker Tesla Inc said in a securities filing Wednesday that support for a shareholder resolution on how it handles arbitration matters rose to 46 percent of the votes cast at its annual meeting last week, against 27% for a similar proposal in 2020.

The non-binding resolution had asked Tesla’s board of directors to study the impact of its use of compulsory arbitration to resolve complaints of harassment and discrimination in the workplace. The matter gained further attention after a jury awarded $ 137 million to a Tesla contract employee last week for racism in the workplace.

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Tesla had opposed the resolution, arguing that arbitration can benefit both sides of a dispute. The company did not immediately comment on the shareholder vote.

Kristin Hull, CEO of Nia Impact Capital who tabled the resolution, called this year’s higher support “a huge improvement as we explain to people why this is important to build an innovative team with a diverse corporate culture. and inclusive “.

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Tesla CEO Elon Musk owns 23% of Tesla’s shares, according to his proxy statement, which means the measure would have been ruled out of his votes, Hull said.

Wednesday’s record showed that of the two company directors running for re-election last week, James Murdoch received the support of 70% of the votes cast and Kimbal Musk, Elon Musk’s brother, received the support of 80% of the votes cast.

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(Reporting by Ross Kerber and Hyunjoo Jin; Editing by Chris Reese and Stephen Coates)


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