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The Securities and Exchange Commission has settled with Tesla Inc. and Elon Musk and it involves Musk’s removal as chairman of the Tesla board and the payment of $40-million in penalties. Musk, who remains as CEO, will pay $20-million of the penalty personally, without using insurance or other assistance, and will be ineligible to be re-elected chairman for 3-years, while Tesla is paying the other $20 million and must name two new independent directors, one of which can be the new chair. Continue reading for another video and more information.
“Musk was expected to remain a member of the board of directors under terms of the settlement, which are subject to court approval. A Tesla spokeswoman did not immediately respond to a request for comment late Saturday. Musk and Tesla agreed to settle the charges against them without admitting to nor denying the SEC’s allegations,” reports Market Watch.