Nikola Corporation (NASDAQ: NKLA) stock saw a modest rise on Friday after dismissing Trevor Milton’s board picks.
Nikola (NKLA) has said no to five people suggested by its former CEO Trevor Milton to join its board of directors. This decision comes as Nikola prepares for its 2024 Annual Meeting of Stockholders, where board member elections will occur.
In a press release, Nikola revealed that it had received a notice on January 26 from M&M Residual, LLC, an entity associated with the former CEO. The notice proposed the nomination of five individuals to serve on the company’s eight-member board. The individuals nominated by Milton were Cole Cannon, Derek Johnson, Hans Peterson, Paul Southam, and Dave Sparks.
After evaluating the nominees of Milton, Nikola decided to turn down the suggestion. The company explained its decision, mentioning that these nominees lack experience working in a public company and do not possess the necessary skills or background for the role.
Nikola noted in its press release,
“The Board of Directors reviewed the director nominees and rejected the slate and does not endorse their nomination. The director nominees have no public company experience, add no skills or experience to the board, and indisputably lack the depth of experience that the current Nikola board members bring to the Company. Additionally, it is the Company’s belief that the director nominees lack the expertise or knowledge needed to navigate the complexities of a zero-emissions trucking and energy infrastructure business.”
The Ongoing Struggles of Nikola with Milton
In addition to rejecting the nominees proposed by the former CEO, Nikola underscored that actions of Milton continue to inflict harm on the firm. Nikola pointed out that Milton was deemed liable in an arbitration with the company on October 20, 2023. It led to a verdict that benefited the firm, amounting to $165 million plus interest. This sum includes a settlement of $125 million with the Securities and Exchange Commission from December 2021. As of now, this judgment remains unsettled.
Nikola Corporation (NASDAQ: NKLA) mentioned in its press release,
“Mr. Milton is separated from the Company entirely and has had zero involvement in Nikola’s day-to-day operations since September of 2020; however, Nikola continues to suffer harm created by Mr. Milton’s business decisions from over three years ago in his role as Founder and Executive Chairman.”
Nikola (NASDAQ: NKLA) Stock Movement
NKLA stock gained 1.59% to close at $0.72 on Friday. The traders had exchanged hands with 67,466,914 (67.46 million) shares compared to the average daily trading volume of 97.17 million.