In the charges against Tesla and Elon Musk, the entrepreneur has agreed to pay a total of $40 million and make a series of concessions to settle a government lawsuit.
This settlement is enabling Musk to remain CEO of the electric car company but requires him to discontinue his role as chairman for at least three years. However, he will continue to be the company’s CEO. Following this, Tesla is looking to hire an independent chairman to oversee the company.
“I do not doubt the value of Musk to Tesla,” John Coffee, a Columbia University law professor and corporate governance expert, said. “Without him, they are just a struggling startup that is burning cash at a hopeless rate and is facing a debt refunding crisis in the near future.
Besides a new chairman, Tesla was also ordered to appoint two new, independent members to its board. Whoever becomes the new chairman of Tesla Motors will face the formidable task of reining in Elon Musk.