Monday , September 26 2022

Tesla Names of Telstra Executive to Replace Elk Musk as Chair



TSLA 2.08%

The name of Robyn Denholm as his new chairman, replacing Chief Executive Elon Musk as head of the board with an external relationship that will face the difficult task of overseeing the billionaire.

Ms. Denholm, the chief financial officer of the Australian telecommunications company, Telstra Corp., has served on Tesla's board since 2014 but has less connections with Mr. Musk of most company directors. The companies said he would leave his CFO role in Telstra in May and then leave his role as chairman of the Tesla audit committee.

The announcement late on Wednesday comes before the November 13 closing date that was part of Mr. Musk with the European Union and Exchange Exchange to end claims by misleading investors. That agreement was required to Mr. Musk stepped down as the head of the board for three years in favor of an independent chairman.

Ms. Denholm, who is 55 years old, fits the chair as the other leader over Tesla for his first time since his earliest days when Mr Musk was named as chairman in 2004 after becoming the largest investor. Mr Musk, who has also held the title of the chief architect of the product, has run almost Tesla as an extension to himself, leading parts of the business as diverse as strategy and marketing, and engineering Join yourself in the smallest production details. He continues to be CEO.

The decision leads to one of the bright lights in America's business as a woman who is not known in the US but has extensive experience as a finance operator in Silicon Valley and native Australia.

As a board member of Tesla, Ms. Denholm has provided some rare automotive experience to a company that is proud of being an outside industry. He spent seven years in Aberystwyth

Toyota Motor

in Australia, where she was a senior financial manager.

Her career was thriving in the technology industry. He held various roles in Sun Microsystems before being employed in

Juniper Networks

in 2007. He left as chief financial officer and operations officer in 2016 and in 2017 he joined Telstra, where he was the main operations officer. It came to CFO this year.

An enthusiasm for the future Mr Musk's vision, including self-propelled electric cars, has helped to put pressure on Tesla market value to compete

General Motors

, although Tesla has never turned an annual profit and sells a fraction of cars. The growth of Tesla has, in part, been stolen by its continuous access to capital – either by giving new shares or taking a new debt. Tesla would be without Mr. Musk is likely to have more difficult time to raise money, analysts said.

That creates a challenging situation for the Tesla and Ms Denholm board. They must control Mr Musk while allowing him to act in the unconventional way that has enabled his success. Tesla recognizes so many files with the SEC, stating that the company "is very dependent on services" Mr Musk.

An agreement with the Securities and Exchange Commission required Mr. Musk stepped down as the head of the board for three years in favor of an independent chairman.

An agreement with the Securities and Exchange Commission required Mr. Musk stepped down as the head of the board for three years in favor of an independent chairman.


Marcio Jose Sanchez / Associated Press

The SEC dispute is derived from Mr Musk in August 7 tweets where the idea arose from take a private Tesla and said he had secured money for an agreement for $ 420 as a share. In the first instance, the shares grew up with the unexpected news only to wind up later as it was clear over days that Mr Musk did not have a final plan.

The SEC alleged that Mr Musk had not financed funds and charged with choosing that price – a reference to farijuana-to impress his love.

The settlement was not September 29 with the SEC, where Mr. Musk has admitted or denied a mistake, requiring him and Tesla to pay $ 20 million in fines. He also asked Tesla to add two new independent board members and to establish a system to oversee public declarations. Musk. Tesla has up to the end of December to meet those requirements. Mr Musk was allowed to remain Tesla CEO and stay on board Tesla.

Tweet Mr Musk wants to go with private beaches triggering the price of Tesla stock and triggered an emergency for the board. A week later, he appointed a special committee to evaluate a possible agreement, composed by Ms Denholm and two other directors. The committee hired councilors but it was abolished when Mr Musk refused the course later in August.

It is not clear whether the loss of the chair's role will change Mr Musk's behavior. Mr Musk, renowned for his lack of suspicion on Twitter, seems to illuminate the matter. On October 30, he decided that he had deleted his titles and he would go through "The Nothing of Tesla," before adding another message that the company was legally required to have some titles and suggested that & Going through a president.

Days later, the company filed paperwork with the SEC that continued to call to CEO.

That tweet was part of a series of statements since the SEC settlement that seemed to be fun on it without crossing a line to clash the agency to take new steps. On October 4, it seems to be falsifying the SEC in a labeling label and agency such as the "Shortseller Enrichment Commission," in its address to investors who bet against Tesla.

The Tesla board has been criticized by some investors and advocates for lacking independence independence as most directors have close business or personal contact with Mr. Musk. One is his brother, Kimbal Musk.

Stakeholder advocates have challenged the Tesla board, with little success. Earlier this year, shareholders refused to push to vote off Kimbal Musk, long-time investor Antonio Gracias and James Murdoch media operator, and painted as a lack of manufacturing qualifications.

Mr. Murdoch, CEO of Wales

21st Century Fox
, The

He is the main candidate to take the role of the chair. Mr Musk taro those reports in a tweet last month. (21st Century Fox and News Corp, parent company The Wall Street Journal, share common ownership.)

Mr Murdoch joined the Tesla board last year along with Linda Johnson Rice, CEO of Johnson Publishing Co., after shareholders, including the State State Teachers' Retirement System, emphasized the company to add two independent directors.

Ms Denholm started her career as an auditor at Arthur Andersen in Australia in the 1980s before joining Toyota in 1989. He then dealt with a number of financial management roles as Toyota started adding more and more luxury vehicles to; w linell.

He then spent two decades as the Sunicon Valley Sun Microsystems and Juniper Networks technical company.

In recent years, Australia has become an experienced field for US automotive operators. General Motors Co. general product operator, Mark Reuss, run operations there before returning to the U.S. for more responsibilities. The combination of local manufacturing and sales operations gives practitioners practical practical experience as well as experience dealing with currency fluctuations.

Write to Tim Higgins at [email protected]

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