Tesla Chair’s Re-Election Opposed by Adviser Over Share Pledging

Tesla Inc. investors should vote against the re-election of board chair Robyn Denholm because directors are being highly compensated and pledging significant amounts of stock for personal loans, the world’s largest proxy adviser said.

Opposing Denholm is warranted because Tesla has failed to give reasonable rationale for consecutive years of high director pay, Institutional Shareholder Services Inc. said in a report. The firm also flagged “significant concerns” about the increase in the number of shares Chief Executive Officer Elon Musk and other board members have borrowed against.

Robyn Denholm

Photographer: Brendon Thorne/Bloomberg

“The increase in pledging activity at the company with the absence of ...