Under the settlement, Tesla also is required to appoint two new independent directors, and it must review the Musk's posts about the company on Twitter. Denholm has been working with Telstra for two years, during which she has received borne media scrutiny about her ability to manage her time between the Australian and North American company.
Executive recruiter Patricia Lenkov, however, said that Denholm likely was not the right pick for the job, arguing Tesla needed a figure with more experience dealing with strong founders. A spokesperson at the company told CNBC that Denholm will receive 8,000 stock options each year and a cash retainer of $300,000 once she leaves Telstra.
Musk was forced to give up the role as part of a settlement with the Securities and Exchange Commission over a lawsuit filed against him for his infamous "funding secured" tweet made in August in regards to taking Tesla private, though he remains CEO of the electric auto manufacturer.
Tesla has a new chairperson in the driver's seat and her name is Robyn Denholm. Telstra is the largest telecommunications company in Australia.
Mr Musk, Tesla's controversial co-founder, resigned as head of its board in September.
12 tweets that are more savage than the Thugs of Hindostan
However, a few of the initial reviews of the film aren't in its favour and seem to be dispiriting the fans. The YRF production is the solo release this week and this will definitely help it in raking more moolah.
Tesla's board has named one of its own as chairman to replace Elon Musk, complying with terms of a fraud settlement with US securities regulators. The Tesla board is actively continuing the search to fill those posts.
Tesla earned a $311.5 million net profit during the third-quarter, delivering the first step of a promise from Musk to post sustainable profits.
Musk said in August he was considering taking Tesla private in a $420 a share and that he had secured funding for a deal that was later scuttled but attracted scrutiny from several government agencies.
While Tesla is finally starting to make good on Musk's promises on production of the Model 3 sedan, seen as crucial to the company's future, it has lost senior executives for sales, human resources, manufacturing and finance in recent months.
Board directors are reportedly planning to create a permanent committee with the sole objective being to ensure the implementation of the terms of the SEC settlement.
It's hard not to feel sorry for Musk, who as a genius tech entrepreneur is probably not used to bowing down to authority.