Larry Ellison will not return to the Tesla board, the automaker said in a 14A document to the SEC yesterday.
In documents released on June 10, Tesla announced that Larry Ellison, a board member and close friend of CEO Elon Musk, would resign.
In June 2022, Lawrence J. Ellison, a Class III director, has decided collectively with the Nominations and Corporate Governance Committee and the Board that he will not run for re-election when his current term expires at the 2022 Annual Meeting, Tesla said in the file. “The board currently expects to reduce the number of seats on the board to seven after Mr Ellison’s term expires at the 2022 annual meeting, and therefore no votes or power of attorney can be cast to elect more than two seats on the board.”
Larry Ellison (Photo: Tesla)
In December 2018, Ellison not only invested $ 1 billion in shares of Tesla, but was also elected to the board. Even before his $ 1 billion investment in Tesla in 2018, Ellison is known to be good friends with Musk. Ellison was even one of Musk’s supporters when he bought Twitter, investing $ 1 billion. Ellison has no other public relations with other automakers, no business related to them. The relationship with Musk certainly proved successful for Ellison, as after his investment in Tesla, the value of his holdings increased by more than 400%.
According to the documentation, Ellison owns 15,290,975 shares, which is equivalent to a 1.5% stake in the carmaker.
It remains unclear why the Oracle CEO chose to leave the board of Tesla. However, the company holds high on his position and resume, stating:
“We believe that Mr. Ellison possesses specific qualities that qualify him to serve on the board, including his long-term leadership in one of the world’s most successful technology companies and experience in technology product development and strategy.”
Ellison will leave board members Kimball Musk, Hiro Mizuno, James Murdoch, Robin Denholm, Ira Erenerpis and Kathleen Wilson-Thompson.
Tesla also announced that it will split the shares 3: 1 upon filing.
Disclosure: William Johnson is not a shareholder in TSLA.
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Tesla board member Larry Ellison will retire
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