<p>Proxy advisory firm Institutional Shareholder Services (ISS) recommended on Monday Tesla Inc investors vote against the re-election of two of its board members, Ira Ehrenpreis and Kathleen Wilson-Thompson.</p>.<p>ISS cited concerns about "the board's risk oversight in light of the pledging (as collateral) of a significant amount of the company's stock by certain directors" as one of the reasons for the recommendation.</p>.<p>Ehrenpreis and Wilson-Thompson are both members of the Nominating and Corporate Governance committee at Tesla's management.</p>.<p>Big institutional investors usually take their cues on voting on company matters from proxy advisers' recommendations.</p>.<p>Pledging of company stock by directors or executive officers can pose a risk to the investments of outside shareholders, ISS said, adding that directors and executives with a pledged position may be forced to sell company stock, for example, to meet a margin call.</p>.<p>As of March 31, CEO Elon Musk, director Kimbal Musk, and director Ira Ehrenpreis had pledged a portion of their share ownership, ISS said.</p>.<p>The proxy adviser said that the aggregate number of pledged shares increased from 88.93 million, valued at $62.756 billion based on the previous fiscal year-end share price, to 89.74 million, valued at $94.835 billion.</p>.<p>"This reflects an increase in the number of shares pledged by Elon Musk, from 88.33 million to 89.18 million, a slight decrease in Kimbal Musk's pledging from 599,740 shares to 511,240 shares, and a new pledge of 41,635 shares by Ira Ehrenpreis," ISS said.</p>.<p>ISS also urged Tesla investors to vote for a shareholder proposal regarding the right of employees to form a labor union.</p>.<p>Tesla's annual meeting of stockholders is scheduled to be held on August 4. </p>
<p>Proxy advisory firm Institutional Shareholder Services (ISS) recommended on Monday Tesla Inc investors vote against the re-election of two of its board members, Ira Ehrenpreis and Kathleen Wilson-Thompson.</p>.<p>ISS cited concerns about "the board's risk oversight in light of the pledging (as collateral) of a significant amount of the company's stock by certain directors" as one of the reasons for the recommendation.</p>.<p>Ehrenpreis and Wilson-Thompson are both members of the Nominating and Corporate Governance committee at Tesla's management.</p>.<p>Big institutional investors usually take their cues on voting on company matters from proxy advisers' recommendations.</p>.<p>Pledging of company stock by directors or executive officers can pose a risk to the investments of outside shareholders, ISS said, adding that directors and executives with a pledged position may be forced to sell company stock, for example, to meet a margin call.</p>.<p>As of March 31, CEO Elon Musk, director Kimbal Musk, and director Ira Ehrenpreis had pledged a portion of their share ownership, ISS said.</p>.<p>The proxy adviser said that the aggregate number of pledged shares increased from 88.93 million, valued at $62.756 billion based on the previous fiscal year-end share price, to 89.74 million, valued at $94.835 billion.</p>.<p>"This reflects an increase in the number of shares pledged by Elon Musk, from 88.33 million to 89.18 million, a slight decrease in Kimbal Musk's pledging from 599,740 shares to 511,240 shares, and a new pledge of 41,635 shares by Ira Ehrenpreis," ISS said.</p>.<p>ISS also urged Tesla investors to vote for a shareholder proposal regarding the right of employees to form a labor union.</p>.<p>Tesla's annual meeting of stockholders is scheduled to be held on August 4. </p>