Following the appointment of Robyn Denholm as the chairman of Tesla’s board, replaced CEO Elon Musk. The move was a requirement of Musk’s settlement with the SEC over his infamous “funding secured” tweet, but she will not take over the chairman spot for six months.
Bloomberg reports that Robyn Denholm has been appointed as the chairman of the board of Tesla, a position formerly occupied by the company’s CEO Elon Musk, who was forced to leave the role following a settlement with the SEC. Denholm will assume the role of chairman of the board after giving a six month notice period to the Australian telecommunications company Telstra Corp. where she previously served as the company’s CFO.
Stephen Diamond, a professor of law at Santa Clara University, commented on the replacement of Musk as chairman stating: “While Denholm is technically an independent member of the board, she has been part of the Musk team for some time now and that suggests she will not be up to the task of checking Musk’s worst instincts. And, of course, that was the whole point of the SEC settlement.”
Denholm only worked as the CFO of Telstra for a month before accepting the position of chairman at Tesla, but she still reportedly plans to stay at the company for another 6 months stating that she plans to devote her attention full time to Tesla once her obligations to Telstra are complete. “I believe in this company, I believe in its mission and I look forward to helping Elon and the Tesla team achieve sustainable profitability and drive long-term shareholder value,” Denholm said in a statement.
Musk discussed Denholm’s appointment stating: “Robyn has extensive experience in both the tech and auto industries, and she has made significant contributions as a Tesla board member over the past four years in helping us become a profitable company. I look forward to working even more closely with Robyn as we continue accelerating the advent of sustainable energy.”
Frank Schwope, an analyst with NordLB in Germany, commented on the appointment of Denholm saying: “She’s from Musk’s inner circle and is unlikely to put obstacles in the way of decisions. This exercise, brought on by the SEC deal, was to teach Musk a lesson and this is an easy way to fulfill the requirement.”
Board directors are reportedly planning to create a permanent committee with the sole purpose being to ensure the implementation of the terms of the SEC settlement. Tesla share prices currently sit at $353.09 per share as of the time of the writing of this article.