More than a month after Elon Musk had to step down from the board members of electric-car maker Tesla, board member Robyn Denholm has been asked to replace Elon Musk as its chair. This was a part of a settlement with US regulators.
Tesla had time till November 13th to name an independent board chairman under the settlement with the US Securities and Exchange Commission. The commission said that Musk’s tweets regarding taking the company private were fraudulent and consequently, he couldn’t be the chairman but was allowed to retain his role as the CEO of Tesla.
In August, Musk tweeted that he was considering to take Tesla private in a $420 (roughly Rs. 30,300) per share and also claimed that he had secured funding for the deal. This was later scuttled but resulted in undue attraction and scrutiny from several government agencies.
Tesla went through months of turbulence before appointing Robyn Denholm as the chairman, by replacing Elon Musk. Musk’s erratic behavior in the public, in recent times, has raised concerns about his ability to steer the company through a rocky phase of growth.
Robyn Denholm is currently the chief financial officer at an Australian telecoms operator named Telstra Corp and has remained an independent director on Tesla’s board since 2014.
On Wednesday, Tesla said thus- “Denholm will leave her role as the CFO and head of strategy at Telstra after her six-month notice period with the company is complete. Denholm will serve as chair on a full-time basis and will temporarily step down as Chair of the company’s audit committee only until she leaves Telstra.” Last month, Tesla shut down some critics after it reported a net profit, positive cash flow and wider-than-expected margins in the third quarter, thereby delivering Musk’s promise of turning the company into a profitable asset. A Tesla spokeswoman said that Denholm will receive an annual cash retainer of $300,000 and 8,000 stock options annually.