Tesla has employed a brand new board member with no automotive background, however that’s not an issue as the primary duty of Tesla’s board members nowadays is to promote shares and let Elon Musk destroy the model.
Tesla introduced at present that Jack Hartung, higher recognized for being a long-time high govt of Chipotle, the Mexican restaurant model, is becoming a member of Tesla’s board.
The corporate wrote within the announcement:
We’re happy to welcome Jack Hartung to Tesla’s Board of Administrators, efficient June 1, 2025. Jack joined Chipotle Mexican Grill, Inc. in 2002 and has held a number of management positions throughout his tenure. Most lately, Jack has been serving as President and Chief Technique Officer, and beforehand served as Chief Monetary and Administrative Officer, the place he was liable for all finance and accounting features in addition to provide chain, technique and security and asset safety.
Over the previous 20+ years beneath Jack’s monetary management, Chipotle has seen vital progress with over 3,700 eating places at present throughout the US, Canada, the UK, France, Germany, Kuwait and the United Arab Emirates. Jack was named ‘CFO of the Yr’ by Orange County Enterprise Journal and Finest CFO within the restaurant class by Institutional Investor. Jack will likely be retiring from his govt function on June 1st and transition to a senior advisor function with Chipotle. Jack serves on the Board of Administrators for Portillo’s Inc., The Trustworthy Firm, Inc. and ZocDoc, Inc.
Hartung is becoming a member of the board at a vital second for Tesla.
The board is being extremely criticized for not doing its job of supervising the manager crew, primarily Elon Musk.
Musk has lengthy been seen as controlling Tesla’s board regardless of his minority possession of Tesla. The difficulty led to his CEO compensation bundle being rescinded by a choose as a consequence of being seen as negotiating towards himself.
The board have backed his each transfer, granted him a $55 billion CEO compensation bundle, and remained silent when he threatened Tesla shareholders that he wouldn’t develop AI merchandise at Tesla except given a bigger, extra controlling share of the corporate, or determined to fireplace Tesla’s total charging crew to make an instance out of the top of the crew.
Most lately, they haven’t addressed the protests at Tesla shops and product boycotts, that are attributed to Musk’s involvement in politics, angering a good portion of the inhabitants and Tesla’s client base.
The board’s relaxed method on the subject of Musk is commonly attributed to being populated by people who find themselves near Musk and have monetary dealings with Musk and his companies exterior of Tesla.
They’re additionally extremely compensated to let Musk do what he needs. A lot in order that shareholders sued them for “overcompensation” they usually agreed to return and cancel about $1 billion in compensation.
In the previous few months, Tesla’s board members have bought tons of of thousands and thousands of {dollars} value of Tesla shares.
Resulting from all these points, Tesla has been searching for a brand new board member who might be thought of “impartial” of Musk.
In its disclosure of getting added Hartung to the board, Tesla claimed that his solely connection to Tesla or the board is a son-in-law who works at Tesla:
“A son-in-law of Mr. Hartung has been a non-executive, salaried worker of Tesla since December 2016, and doesn’t share a family with Mr. Hartung. He’s presently a Service Technician at Tesla and earned whole compensation for fiscal 12 months 2024, together with the worth of fairness incentives, of roughly $124,000. This compensation was decided in accordance with Tesla’s compensation practices relevant to workers with related {qualifications} and tasks and holding related positions.”
Nevertheless, they didn’t disclose that Hartung is aware of Kimbal Musk, Elon’s brother and a long-time board member.
Kimbal was on Chipotle’s board from 2016 to 2019 when Hartung was a high govt on the firm.
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