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Tesla appoints Robyn Denholm as chair to replace Elon Musk


By Pushkala Aripaka

(Reuters) - Inc said will replace Elon Musk as its chair, more than a month after the billionaire had to step down as the electric-car maker's as part of a settlement with U.S. regulators.

had until Nov. 13 to name an independent board under its agreement with the Securities and Exchange Commission, which said Musk's tweets about taking the company private were fraudulent and that the billionaire should quit as but could retain his role as

Musk, who has been on Tesla's board since 2004, tweeted in August he was considering taking the company private for $420 per share and had secured funding for a deal that was later scuttled but attracted scrutiny from several government agencies.

The appointment of Denholm caps months of turbulence for the company and its stock as investors called for stronger oversight of Musk, whose erratic public behavior raised concerns about his ability to steer the company through a rocky phase of growth.

Denholm is currently at Australian and has been an on Tesla's nine-member board since 2014.

Denholm takes over as Tesla's immediately and will leave her role as and head of strategy at Telstra once her six-month notice period with the company is complete, said late on Wednesday. She was appointed as Telstra's in July.

Tesla said Denholm, one of the two women on its board, will serve as on a full-time basis and will temporarily step down as of the company's audit committee until she leaves Telstra.

"Would like to thank Robyn for joining the team. Great respect. Very much look forward to working together," Musk tweeted early on Thursday.

had in October reported that outgoing was the lead candidate for the job, citing two people briefed on discussions. Musk later tweeted that this was "incorrect."

Murdoch is also an on Tesla's board.

The carmaker last month quieted some critics after it reported a net profit and positive cash flow in the third quarter as higher production volumes of its crucial Model 3 sedan began to pay off, delivering on Musk's promise to turn the company profitable.

A Tesla said Denholm would receive an annual cash retainer of $300,000 and 8,000 stock options annually.

The also said Tesla was actively looking for two additional independent directors.

(Reporting by and in Bengaluru; Editing by and Saumyadeb Chakrabarty)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Thu, November 08 2018. 15:53 IST