The list of SolarCity directors who will vote on Tesla’s $2.86 billion bid is getting shorter, as Bloomberg reports two more directors have recused themselves, as the incestuously deep connections between the two companies create clear potential conflicts of interest, according to analysts and experts in governance issues.
A few of the directors are related by blood, others have through longstanding personal and professional relationships and some made significant investments in both companies…
“The conflict is very ripe,” said Steven Davidoff Solomon, a professor at the University of California at Berkeley’s School of Law. “Elon Musk is entering into a transaction where he’s going to make hundreds of millions of dollars. The market isn’t happy about it. And they’re not playing by the usual conflict playbook. That’s a triple strike against them.”
Invest or Incest?
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