Tesla re­places Elon Musk, names Tel­stra ex­ec­u­tive Robyn Den­holm as Chair

The Northlines - - BUSINESS -

Tesla Inc said board mem­ber Robyn Den­holm will re­place Elon Musk as its Chair, more than a month af­ter the bil­lion­aire had to step down as the elec­tric- car maker’s Chair as part of a set­tle­ment with US reg­u­la­tors.

Tesla had un­til Nov. 13 to name an in­de­pen­dent board chair­man un­der the set­tle­ment with the US Se­cu­ri­ties and Ex­change Com­mis­sion, which said Musk’s tweets about tak­ing the com­pany pri­vate were fraud­u­lent and that the bil­lion­aire could re­tain his role as CEO but should quit as chair­man.

Musk said in Au­gust he was con­sid­er­ing tak­ing Tesla pri­vate in a $420 a share and that he had se­cured fund­ing for a deal that was later scut­tled but at­tracted scru­tiny from sev­eral gov­ern­ment agen­cies.

The ap­point­ment of Den­holm caps months of tur­bu­lence for the com­pany and its stock and in­vestors called for stronger over­sight of Musk, whose re­cent er­ratic pub­lic be­hav­ior raised con­cerns about his abil­ity to steer the com­pany through a rocky phase of growth.

Den­holm is cur­rently chief fi­nan­cial of­fi­cer at Aus­tralian tele­coms op­er­a­tor Tel­stra Corp Ltd and has been an in­de­pen­dent di­rec­tor on Tesla’s board since 2014 Den­holm will leave her role as CFO and head of strat­egy at Tel­stra once her six- month no­tice pe­riod with the com­pany is com­plete, Tesla said late on Wed­nes­day. She was ap­pointed as Tel­stra’s CFO in July. Tesla said Den­holm will be serv­ing as Chair on a full- time ba­sis and that she will tem­po­rar­ily step down as Chair of the com­pany’s au­dit com­mit­tee un­til she leaves Tel­stra.

The car­maker last month qui­eted some crit­ics af­ter it re­ported a net profit, pos­i­tive cash flow and wider-than-ex­pected mar­gins in the third quar­ter, de­liv­er­ing on Musk’s prom­ise to turn the com­pany prof­itable. A Tesla spokes­woman said that Den­holm will re­ceive an an­nual cash re­tainer of $300,000 and 8,000 stock op­tions an­nu­ally.

The spokes­woman also said Tesla was ac­tively look­ing for two ad­di­tional in­de­pen­dent di­rec­tors.

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