This was published 6 years ago
Telstra executive Robyn Denholm quits to be Tesla chairman
By Jennifer Duke & John McDuling
Telstra chief financial officer Robyn Denholm has called it quits at the telecommunications company a month into her role to become chairman of Elon Musk's electric car and sustainable energy business, Tesla.
The telco announced the change to its leadership team on Thursday afternoon, with Ms Denholm to serve out her notice period until May 6. She has worked at Telstra since January 2017 as chief operations officer and was promoted to chief financial officer on October 1.
Telstra's Robyn Denholm has called it quits to take the role of chairman with Tesla. Credit: Ben Rushton
Telstra chief executive Andy Penn said in a statement he was sorry to see Ms Denholm leave.
“We know that it has become increasingly difficult to balance her responsibilities as Telstra CFO with the increased activity of the Tesla board,” Mr Penn said.
Mr Penn has been repeatedly questioned about Ms Denholm's ability to juggle the roles at both companies.
Telstra recently unveiled a radical shake-up plan after a year of share price declines and increasing competition, known as Telstra 2022. Part of the revival of the telco was a substantial change in the management team.
Billionaire Mr Musk in September agreed to step aside as Tesla chairman for three years and pay a $US20 million ($27.7 million) fine under a deal with the US Securities and Exchange Commission to resolve a securities fraud case. The case related to a Twitter post saying he had "funding secured" for a buyout of the electric-car company at $US420 a share.
In early October, Ms Denholm ruled herself out for the chairmanship role when asked by Fairfax Media. It was later revealed she is being sued, along with the rest of Tesla's board, over claims of breaching their fiduciary duty by failing to manage Mr Musk's communications.
A board director at Tesla will be supporting Ms Denholm in her new role as she works through her notice period, and she will not have Tesla board committee responsibilities in that time.
“We are undertaking a search for a new chief financial officer and will provide an update on a replacement appointment as soon as possible,” Mr Penn said.
A Tesla spokesman said Ms Denholm would receive an annual cash retainer of $300,000, with $8000 in stock options annually. Tesla is searching for two more independent directors.
A statement from Ms Denholm said she believed in Tesla and looked forward “to helping Elon and the Tesla team achieve sustainable profitability and drive long-term shareholder value”.
She has been on the Tesla board as an independent director since 2014 and previously worked at Juniper Networks, Sun Microsystems and Toyota.
Recent court documents show Ms Denholm was paid $US4.9 million ($7 million) as a Tesla director in 2017, compared with total compensation of $2 million at Telstra last year.