Tesla added Larry Ellison and Kathleen Wilson-Thompson to its board on Friday, fulfilling the terms of the settlement reached with Us securities regulators over its CEO’s problematic posts about taking the company private.
Ellison, the co-founder of Oracle Corp, and Wilson-Thompson, the global chief human resources officer of Walgreens Boots Alliance Inc, join a board the Securities and Exchange Commission ordered to step up its governance and oversight measures after Elon Musk claimed in August to have had the funding and investor support for a buyout. The chief executive officer relinquished the role of chairman in November, and both he and the company agreed to pay $20 million penalties.
The new additions to the board put a bookend on a months-long distraction that at one point looked like it may cost Musk his future with the company. While reining him in may prove challenging, they’ll help steer a carmaker that’s made significant strides in profitably making and delivering electric vehicles.
Tesla’s shares rose as much as 6 percent to $335.00 as of 8.40 am Friday in New York, before the start of regular trading. The stock was up 1.5 per cent this year through the close Thursday.