PHOENIX - Nikola (NASDAQ:NKLA) Corporation (NASDAQ:NKLA), a company specializing in zero-emissions transportation, has announced its decision to reject a group of director nominees proposed by its former Executive Chairman, Trevor Milton. The nominees were intended for election at Nikola's 2024 Annual Meeting of Stockholders.
The company's Board of Directors reviewed and declined the slate of five nominees presented by Milton's entity, M&M Residual, LLC, on January 26, 2024. Nikola's board stated that the proposed directors lack public company experience, relevant skills, and the in-depth knowledge necessary to navigate the zero-emissions trucking and energy infrastructure sector.
Trevor Milton, who has been separated from the company since September 2020, was convicted on January 17, 2024, of one count of securities fraud and two counts of wire fraud related to his activities at Nikola. He was sentenced to 48 months in prison, followed by three years of supervised release. Additionally, Milton was found liable in an arbitration with Nikola, resulting in a $165M award to the company, including a $125M settlement with the Securities and Exchange Commission from December 2021, which remains unpaid.
Nikola's current Board of Directors comprises individuals with diverse expertise across various sectors relevant to the company's operations. The board includes Nikola President and CEO Steve Girsky, a former vice-chairman of GM; Steve Shindler, former CEO and CFO in the Nextel organization; Mary Petrovich from The Carlyle Group (NASDAQ:CG); and Andrew Vesey of Fortescue Future Industries, among others.
The company affirms that its board's expertise is essential for Nikola's success and stands behind the current members. Nikola will disclose its director nominees in its proxy statement to be filed with the SEC. Shareholders are advised that no action is required from them at this moment.
Nikola Corporation, headquartered in Phoenix with a manufacturing facility in Coolidge, Arizona, is committed to pioneering sustainable transportation solutions. Its focus includes battery-electric and hydrogen fuel cell electric trucks, along with the development of a complete hydrogen refueling ecosystem.
This news is based on a press release statement from Nikola Corporation.
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