What happened
Retirements and replacements in a company's board of directors are fairly standard, and typically not excessive causes for concern. But investors have a habit of getting very worried when several directors head toward the exit door at the same time. That was the dynamic behind the queasy 15%-plus dive in Nikola's (NKLA 1.41%) stock price on Friday to a new all-time low of $0.82 per share.
So what
Not one, not two, but three Nikola directors are bowing out, the company revealed late Thursday. These are Gerrit Marx, Lynn Forester de Rothschild, and Mark Russell. The trio will formally step down from the board at the electric vehicle (EV) and hydrogen-powered engine company's annual general meeting (AGM), as they have decided not to stand for re-election. The AGM is scheduled for this coming June 7.
All three carry much auto industry and/or financial sector experience with them. This particularly applies to Russell, who served as Nikola's CEO until stepping down in 2022. Marx is the CEO of veteran truck maker Iveco Group, while Rothschild is a member of the eponymous banking and finance family, and serves as CEO of the E.L. Rothschild investment company.
Steve Girsky, Nikola's chairman of the board, was quoted as saying that "As the Company evolves, the size and composition of the Board will as well. We are grateful for the many contributions that Gerrit, Lynn and Mark have made to Nikola over the years and wish them well."
Now what
At the AGM, a total of seven Nikola directors are to be elected to the 10-member board. Hopefully for shareholders, these will be individuals with the outgoing board members' depth and breadth of experience.
