"Elon Musk's Brother Opposes Tesla Director Reappointment, Major Voting Advisor 'ISS' Recommends Against"

"Claiming to have received excessive compensation without basis"

[Image source=AP Yonhap News]

[Asia Economy Reporter Lim Cheol-young] ISS (Institutional Shareholder Services), the world's largest proxy advisory firm, has expressed opposition to the reappointment of Elon Musk's Tesla CEO brother Kimbal and Rupert Murdoch's son James to the board of directors.

According to Bloomberg on the 26th (local time), ISS recommended opposing the reappointment of the two directors in a report released on the 24th. ISS argued that these directors have received excessive compensation without satisfactory performance, including stock options.

The Tesla board, composed of nine directors, is scheduled to make a final decision at the shareholders' meeting on the 7th of next month. According to MarketWatch in April, Kimbal Musk exercised 12,000 stock options, realizing a profit of $7.22 million. Kimbal is also listed as a director of SpaceX. Another board member, James Murdoch, son of media mogul Rupert Murdoch, served as CEO of 21st Century Fox from 2015 to 2019.

ISS is the world's largest proxy advisory firm providing voting guidelines to institutional investors. Large institutional investors such as pension funds, major players in the capital market, exercise their voting rights based on recommendations from advisory firms like ISS.