Tesla’s latest board member has a long stand against short-selling
Tesla has included Hiromichi Mizuno as a current member to its board of directors and audit committee — the previous chief investment officer of Japan’s $1.5 trillion grant fund and a longtime contender of traditional market practices like short selling.
With Mizuno’s selection, the Tesla board presently has 10 members, including Oracle founder, chairman and CTO Larry Ellison and Walgreens administrator Kathleen Wilson-Thompson. Mizuno will also remain on the board’s audit committee.
The Story of Mizuno
Mizuno has a great career in investment and finance that involve a job as managing director and chief finance officer of Japan’s Government Pension Investment Fund (GPIF), the biggest in the world with around $1.5 trillion in assets under management. Mizuno resigned his position in late March.
Through his time at GPIF, Mizuno developed environmental, social and governance methods.
He was further known for testing short selling — a system that has troubled Tesla and its CEO Elon Musk.
While his tenure, the GPIF discontinued stock lending, which seized many by surprise.
Mizuno’s resistance to short selling is at differences with a few market purists who consider the investment strategy — which reflects on the decline in a stock — actually gives higher price transparency.
Mizuno has stated in his previous conversations with media outlets like the Financial Times that it clashes with his long-term view.
Mizuno is on various government bulletin boards, including the board of the PRI, the World Economic Forum’s Global Future Council plus the Japanese government’s strategic fund united advisory board.
Restructuring At Tesla
In April 2019, the firm said it would lessen its board down by more than one-third, to seven executives, by 2020, a move that involved the loss of some of Musk’s initial partners and associates.
Longtime board members Brad Buss and Linda Johnson Rice, who entered two years ago as autonomous directors, did not attempt re-election in 2019 and their duration expired at the company’s yearly shareholder meeting in June.
Antonio Gracias, whose term concludes in 2020, and investment capitalist Steve Jurvetson will exit the board in 2020, according to an administrative filing last year.
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