Tesla Taps Robyn Denholm To Replace Elon Musk As Board Chair

Tesla Taps Robyn Denholm To Replace Elon Musk As Board Chair


Robyn Denholm, currently CFO of Australian telecommunications company Telstra, is replacing Elon Musk as Tesla's new full-time board chair.

<figcaption><fbs-accordion><p class="color-body light-text">Robyn Denholm, currently CFO of Australian telecommunications company Telstra, is replacing Elon Musk as Tesla’s new full-time board chair.<small>Telstra</small></p></fbs-accordion></figcaption></figure><p>Tesla said company director <a href="http://ir.tesla.com/board-directors/robyn-denholm" target="_blank" class="color-accent">Robyn Denholm</a> will replace Elon Musk as its board chair, fulfilling a key requirement of Securities and Exchange Commission settlement that arose from the billionaire entrepreneur’s ill-advised tweets about taking the company private. </p><p>The selection of Denholm, who joined Tesla’s board in 2014, indicates a preference for an independent executive who’s also highly familiar with the company’s expanding auto and energy businesses. In accepting the job, she’ll leave her position as CFO and head of strategy for Australia’s <a href="https://www.telstra.com.au/?direct" target="_blank" class="color-accent">Telstra Corp.</a> to focus full time on Tesla, the electric-car company said in a statement. </p><p>“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,” Robyn said in a <a href="https://www.tesla.com/en_CA/blog/announcing-robyn-denholm?redirect=no" target="_blank" class="color-accent">blog post</a>. </p><p>The move comes ahead of a deadline — apparently next week — for Musk to relinquish the chairman role he’s held since 2004. While he’s allowed to retain a board seat, the Palo Alto, California-based company must also add two new independent board members by about year-end to reduce what appears to have been a <a href="https://www.forbes.com/sites/alanohnsman/2018/09/13/elons-enablers-teslas-submissive-board-may-be-as-big-a-risk-as-an-erratic-ceo/#78c8dde7f56e" target="_blank" class="color-accent">high degree of compliance</a> with the charismatic executive’s wishes. </p><p>The SEC filed suit against Musk in September claiming his August 7 comments on Twitter of having “funding secured” to take Tesla private at $420 a share constituted securities fraud since that statement was untrue and he knew it, or should have. </p>

<p>Musk agreed to settlement terms on September 30, which also require him and Tesla to each pay $20 million fines. It was the only option for him to avoid being forced out entirely if he’d fought the SEC suit in court and lost.</p><figure class="image-embed embed-6">

<figcaption><fbs-accordion><p class="color-body light-text"><small>Elon Musk via Twitter</small></p></fbs-accordion></figcaption></figure><p>“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,” Musk said in the statement. “I look forward to working even more closely with Robyn as we continue accelerating the advent of sustainable energy.”</p><p>Prior to joining Telstra, Denholm had been executive vice president and CFO of networking equipment maker Juniper Networks. She’s also worked for Sun Microsystems, Toyota’s Australian unit and at Arthur Andersen &amp; Co.&nbsp;</p><p>Musk will serve as a resource for Denholm during her transition out of Telstra. She’ll also temporarily give up her role as Tesla’s Audit Committee chair until she relocates full time to Silicon Valley. She will continue to act as a resource for Telstra and receive an annual retainer of $300,000 per year from the telecommunications company and stock allotments, according to Tesla. </p><p>Changes to Tesla’s board are just the latest new developments for the company, which posted a surprise third-quarter record profit last month that was far above consensus expectations. That $311.5 million third-quarter profit was exactly what the company needed after a wild and wooly three months, highlighted by a libel lawsuit and the SEC settlement caused by Musk’s tweets. A big jump in its Model 3 electric sedan sales was a driver of that profit, but there was also an unexpected windfall that analysts hadn’t factored in: A surge in sales of highly lucrative emissions credits.</p><p>In its <a href="http://ir.tesla.com/static-files/c8fa9d0d-827a-47ba-950a-b19e1fe21662" target="_blank" class="color-accent">10-Q filing</a> last week, Tesla noted that sales of Zero-Emission Vehicle credits and other emissions credits came in at a whopping $189.5 million, up from $20.1 million in the year-earlier quarter. Since those credits are generated from each electric, zero-emission vehicle Tesla sells, with no added expenses, they’re pure profit — essentially free money. And in this case, they were also 61% of Tesla’s quarterly net income. </p><p>Separately, the company also said in last week’s filing that it received a subpoena from the SEC related to a review it’s conducting over "certain projections that we made for Model 3 production rates during 2017 and other public statements relating to Model 3 production. The DOJ has also asked us to voluntarily provide it with information about each of these matters and is investigating," according to the company. </p><figure class="image-embed embed-8">

Tesla CEO Elon Musk is relinquishing his role as board chair, a position he's held since 2004.

<figcaption><fbs-accordion><p class="color-body light-text">Tesla CEO Elon Musk is relinquishing his role as board chair, a position he’s held since 2004.<small>ASSOCIATED PRESS</small></p></fbs-accordion></figcaption></figure>”>

Robyn Denholm, currently CFO of Australian telecommunications company Telstra, is replacing Elon Musk as Tesla’s new full-time board chair.Telstra

Tesla said company director Robyn Denholm will replace Elon Musk as its board chair, fulfilling a key requirement of Securities and Exchange Commission settlement that arose from the billionaire entrepreneur’s ill-advised tweets about taking the company private.

The selection of Denholm, who joined Tesla’s board in 2014, indicates a preference for an independent executive who’s also highly familiar with the company’s expanding auto and energy businesses. In accepting the job, she’ll leave her position as CFO and head of strategy for Australia’s Telstra Corp. to focus full time on Tesla, the electric-car company said in a statement.

“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,” Robyn said in a blog post.

The move comes ahead of a deadline — apparently next week — for Musk to relinquish the chairman role he’s held since 2004. While he’s allowed to retain a board seat, the Palo Alto, California-based company must also add two new independent board members by about year-end to reduce what appears to have been a high degree of compliance with the charismatic executive’s wishes.

The SEC filed suit against Musk in September claiming his August 7 comments on Twitter of having “funding secured” to take Tesla private at $420 a share constituted securities fraud since that statement was untrue and he knew it, or should have.

Musk agreed to settlement terms on September 30, which also require him and Tesla to each pay $20 million fines. It was the only option for him to avoid being forced out entirely if he’d fought the SEC suit in court and lost.

Elon Musk via Twitter

“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,” Musk said in the statement. “I look forward to working even more closely with Robyn as we continue accelerating the advent of sustainable energy.”

Prior to joining Telstra, Denholm had been executive vice president and CFO of networking equipment maker Juniper Networks. She’s also worked for Sun Microsystems, Toyota’s Australian unit and at Arthur Andersen & Co. 

Musk will serve as a resource for Denholm during her transition out of Telstra. She’ll also temporarily give up her role as Tesla’s Audit Committee chair until she relocates full time to Silicon Valley. She will continue to act as a resource for Telstra and receive an annual retainer of $300,000 per year from the telecommunications company and stock allotments, according to Tesla.

Changes to Tesla’s board are just the latest new developments for the company, which posted a surprise third-quarter record profit last month that was far above consensus expectations. That $311.5 million third-quarter profit was exactly what the company needed after a wild and wooly three months, highlighted by a libel lawsuit and the SEC settlement caused by Musk’s tweets. A big jump in its Model 3 electric sedan sales was a driver of that profit, but there was also an unexpected windfall that analysts hadn’t factored in: A surge in sales of highly lucrative emissions credits.

In its 10-Q filing last week, Tesla noted that sales of Zero-Emission Vehicle credits and other emissions credits came in at a whopping $189.5 million, up from $20.1 million in the year-earlier quarter. Since those credits are generated from each electric, zero-emission vehicle Tesla sells, with no added expenses, they’re pure profit — essentially free money. And in this case, they were also 61% of Tesla’s quarterly net income.

Separately, the company also said in last week’s filing that it received a subpoena from the SEC related to a review it’s conducting over “certain projections that we made for Model 3 production rates during 2017 and other public statements relating to Model 3 production. The DOJ has also asked us to voluntarily provide it with information about each of these matters and is investigating,” according to the company.

Tesla CEO Elon Musk is relinquishing his role as board chair, a position he's held since 2004.

Tesla CEO Elon Musk is relinquishing his role as board chair, a position he’s held since 2004.ASSOCIATED PRESS



Source link

About The Author

Related posts

Leave a Reply