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Glass Lewis said its recommendation changed due to the satisfactory action taken by Tesla regarding liability insurance for its directors.
Tesla will hold its annual shareholder meeting on Sept. 22.
In June, Glass Lewis had joined Institutional Shareholder Services Inc (ISS) in opposing the chairwoman’s re-election to the board.
The recommendation was based on corporate governance concerns due to an insurance arrangement with Chief Executive Officer Elon Musk, after Tesla’s decision to not renew its liability policy for directors and officers over high premiums quoted by insurers.
“We are concerned that this D&O arrangement gives the company’s independent directors a direct, personal financial dependency upon the CEO they are tasked with overseeing,” Glass Lewis had said in its earlier recommendation.
Denholm, a company director for nearly six years, was named Tesla chairwoman in November 2018 at a time when investors were demanding more robust oversight of Musk’s activities and public outbursts.
