Tesla Chooses a New Chairman of the Board

Just weeks after Tesla’s CEO Elon Musk settled a securities-fraud lawsuit with the SEC, the company has announced who would be his successor as chairman. Musk had agreed to step down as chairman for three years as a part of the settlement.

Tesla announced that current director, Robyn Denholm, would become its chairwoman immediately.

Ms. Denholm, 55, is the chief financial officer of Telstra, a telecom company in Australia. She will be leaving this position once her six-month notice period is up.

Denholm stated, “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.” She’s previously held positions in finance and strategy at tech companies like Sun Microsystems and Juniper Networks and according to Musk, “she has made significant contributions as a Tesla Board member over the past four years in helping us become a profitable company.”

Erik Gordon, a professor at the University of Michigan’s Ross School of Business, said the appointment of Denholm “technically complies” with the S.E.C. settlement.

He remarked, “If the goal is to provide adult supervision, it won’t accomplish that. She’s been on the board through all of the shenanigans. She never resigned in protest. She is a Musk supporter. If it doesn’t work out, she will be the one who leaves. It won’t be Musk who leaves.”

Disclaimer: We have no position in Tesla Inc. (NASDAQ: TSLA) and have not been compensated for this article.