Tesla Announced The Appointment Of Telstra’s CFO Ms. Robyn Denholm As Its New Chairman

On 8 November 2018, Telstra Corporation Limited (ASX:TLS) announced the resignation of Ms. Robyn Denholm from the role Chief Financial Officer as she plans to Join the Tesla Board as Chairman effective from 13 November 2018. Ms. Robyn will continue in her role with Telstra for her six-month notice period with her final date of employment being 6 May 2019.Â

Recently, Tesla’s CEO Mr. Elon Musk was accused of making misleading statements when he tweeted about taking the company Private due to which the share price of the company was greatly impacted. The U.S. Securities and Exchange Commission (SEC) investigated this issue and offered Elon Musk a settlement. As per the settlement, Musk would still be acting as the chief executive officer of Tesla, but he cannot act as the chairman for three years, and further both Musk and Tesla will have to pay US$20 million each in penalties.

Now to replace Elon Musk, Tesla has appointed Ms. Robyn Denholm as the chairman of Tesla. To make sure that any new commitments as Tesla Board Chair will not detract from her ability to focus on her responsibilities as the Telstra CFO during this six-month notice period, Tesla will be asking another Board Director to support Ms. Robyn by taking on the majority of her Chairman responsibilities and further she will also be stepping down from her other Tesla Board Committee responsibilities during this time. In a statement, Ms. Robyn said, she is looking forward to helping Elon Musk and Tesla team to achieve sustainable profitability and drive long-term shareholder value Tesla team to achieve sustainable profitability and drive long-term shareholder value.

This year despite facing very significant challenges, the results of Telstra were in line with the company’s guidance and demonstrated strong subscriber growth in both fixed and mobile services. On a reported basis, the total income of the company increased by 3 percent to $29 billion in FY 2018. The earnings before interest, tax, depreciation, and amortization decreased by 5.2 percent to $10.1 billion in FY 2018, and Net Profit after Tax reduced by 8.9 percent to $3.5 billion as the effect of the NBN on Telstra’s financials escalated. In FY 2018, the company added 342k retail mobile customers, 88k retail fixed broadband customers and 135k customers on a retail bundle. In FY 2018, the company paid $1.5 billion in Australian income taxes, $200 million in state payroll taxes and a further $100 million in other federal, state and local taxes. In FY 2018, the company reached more than 48,000 people through its digital literacy programs and enabled over 4,000 community-focused organizations to provide digital learning opportunities.

In the last six months, the share price of Telstra decreased by 4.54 percent as on 8 November 2018. TLS shares traded at $3.045 with a market capitalization of circa $36.16 billion as on 9 November 2018 (AEST 4:00 PM).

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