Tesla Appoints Japanese Pension Fund Manager Hiromichi Mizuno As Director

Tesla Inc. TSLA has appointed Hiromichi Mizuno to serve on the board and its audit committee.

What Happened

Mizuno’s appointment to the automaker’s board came into effect as of Thursday. He previously worked as executive managing director and chief investment officer of Japan’s Government Pension Investment Fund (GPIF), which manages $1.5 trillion in assets.

Mizuno placed emphasis on “environmental considerations in portfolio management,” according to Tesla's statement.

The automaker acknowledged that its newly appointed director is known to challenge “many established market practices,” including short-selling “to promote long-term value creation by corporations.”

Tesla stated, “We are excited that Hiro has joined our mission to accelerate the world’s transition to sustainable energy.”

Why It Matters

Tesla CEO Elon Musk, expressed his support for Mizuno when he halted stock lending from its $400 billion foreign equity portfolio, for short-selling purposes. Musk tweeted his appreciation, “Bravo, [the] right thing to do! Short selling should be illegal.”

Musk has had a running battle with short sellers on both Twitter and the media, and he once described them as “Jerks who want us to die.” He also said, “They’re constantly trying to make up false rumors and amplify any negative rumors. It's a really big incentive to lie and attack my integrity. It's really awful.”

The Japanese executive has a broad array of international business and government experience, which spans the World Economic Forum’s Global Future Council, PRI, an investor initiative that works with the United Nations, and the Japanese government’s strategic fund integrated advisory board.

According to Tesla’s SEC filing, Mizuno’s compensation would include 2,778 shares of Tesla’s common stock, vesting, and exercisable on June 18, pending continued service. For his role as a member of the audit committee, he will be awarded 4,000 shares of Tesla’s common stock, vesting in 12 equal tranches, assuming continued service on each vesting date.