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Tesla directors get softer support, shareholder proposal gains traction
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Electric carmaker Tesla Inc on Wednesday reported lower support than usual for two directors at its recent shareholder meeting, and greater support for a call to review the company's use of mandatory arbitration after a court decision in favor of a temporary employee who accused Tesla of racial discrimination.
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The votes indicated growing shareholder dissatisfaction at the company.
In a securities filing Tesla said support for a shareholder resolution on how it handles arbitration matters rose to 46% of votes cast at its annual meeting last week, from 27% for a similar proposal in 2020. Both directors up for election this year also received less support than any did last year.
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The nonbinding resolution on arbitration had asked Tesla's board to study the impact of its use of mandatory arbitration to resolve workplace complaints of harassment and discrimination. The issue drew more focus after a jury award of $137 million to a Tesla contract worker last week over workplace racism.
Tesla had opposed the resolution, arguing arbitration can benefit both parties of a dispute. The company did not immediately comment on the shareholder vote.