James Murdoch’s Tesla board position under threat amid ‘overboarded’ claims

Media tycoon James Murdoch is facing calls to step down as a Tesla non-executive amid fears he is “overboarded”.

Institutional Shareholder Services (ISS), the world’s largest proxy adviser, is recommending shareholders vote against the reappointment of Murdoch – son of billionaire mogul Rupert – and fellow board member Antonio Gracias.

In addition, ISS has sided with two controversial shareholder proposals at its 5 June AGM – one of which is to reduce the power founder Elon Musk wields over Tesla by splitting the roles of chief executive and chairman.

“The complexity of large-scale manufacturing and the challenges of successfully commercialising new technologies and new manufacturing and marketing techniques suggest that shareholders would be better served by having Musk focus on running the company, and allowing an independent director to run the board,” according to a copy of ISS’ recommendations seen by Reuters.

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Sky chairman and 21st Century Fox chief executive Murdoch serves on too many boards, ISS said. Gracias, meanwhile, the CEO of Valor Equity Partners is not sufficiently independent for board committees.

ISS’ advice comes after rival Glass Lewis made similar recommendations earlier this week. However, unlike Glass Lewis – ISS supported the appointment of Musk’s brother Kimbal as a director.

Murdoch plans to hand over his role as Fox boss to his brother Lachlan if Disney’s $52bn takeover of the lion’s share of Fox’s assets is completed. Elder brother Lachlan would run Fox’s residual subsidiary companies, the Wall Street Journal reported.

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