To fulfill the deal struck in September committed to enabling independent oversight after CEO Elon Musk’s famous tweet about privatizing the electric carmaker, Tesla named two board directors including the co-founder of Oracle Corp Larry Ellison.
According to reports by Tesla, Ellison and Walgreens Boots Alliance’s global head of HR Kathleen Wilson – Thompson joined the board. Ellison is a close acquaintance of Musk had already acquired shares worth 3 million of Tesla earlier this year.
After an agreement with the U.S. Securities and Exchange Commission, Musk agreed to pay a fine of $20 million and stepping down as the chairman of Tesla for the next three years. The agreement also mentioned settling the charges that led to his exit. Tesla agreed to pay a fine too.
Tesla had also permitted to comply with the appointment of an independent chairman including two independent directors and a central committee to enable and ensure the effective functioning of Musk’s communications. Twitter had been the platform which had repeatedly been Musk’s go-to venue for ensuring freewheeling communications with Musk’s backbiters.
However, the U.S. judge in October had given permission for the deal resulting in numerous tweets by Musk in response to it. He had considered the company private and had ensured secure and safe funding. The SEC had also filed fake charges against him. In his tweets, he had replied that it was based on completely irrational grounds with no base or evidence.
However, prior to the appointment, Ellison did not hold meetings and sat on the board other than Oracle’s though he had served at Apple during a critical time after Steve Jobs returned to the helm. The struggling computer maker in 1997 indulged in overseeing the greatest turnarounds in the history of corporates.
There were several discussions made by Charles Elson, the director of the corporate governance center at the University of Delaware about the addition of another director with no prior experience for supervising an industrial company like Tesla.
Ellison was questioned about putting a friend on the board where the ideas of independent directors were meant to be the objective and had to face the disappointment of investors hoping for a new director standing up for Mr. Musk.
Ellison declined to make any comments even after being a spokesperson indulging in policymaking. Ivan Feinseth, the Tigress Financial Partners analyst, mentioned in an email about Larry Ellison’s magnificent presence in Silicon Valley with a non-conformist attitude like Elon Musk and bringing a new level of understanding since both of them had undergone a similar struggle. Feinseth suggested that he would take the friendship in good judgment.
Tesla’s shares went up to approximately about 4.4 percent at $33.19 in Friday midday trading. Tesla had successfully named the director of the board chair as Robyn Denholm, fulfilling one of the demands and Denholm joined as the independent director in 2014 and agreed to leave the position of financial chief of the telecoms firms Telstra Corp. Ltd in Australia by spending almost 11 years as the senior vice president at Sun Microsystems.
Tesla had called Ellison an incomparable entrepreneur and Wilson Thomson the ultimate human resource leader. He had done his expansive research to find eligible and efficient directors, driven by the passion for sustainable energy bringing the Tesla board count to 11 people.
Ellison had always tried to add the extra element by making extraordinary and courageous comments where he even went through the diatribe attacking the cloud computing at the 2008 analyst conference which served to showcase Oracle’s move into space and also determined business relations with Hewlett Packard in 2010 in an email to the New York Times. Though he rarely expresses himself on any social media platform- he just tweeted once in 2012 to ensure and deliver the message of promoting Oracle’s cloud products.
Ellison had previously safeguarded Musk mentioned by the Forbes Magazine, worth of $55 billion.