"If Elon listens": Tesla president must keep Elon Musk under control

San Francisco / New York: By choosing Robyn Denholm to keep Elon Musk under control, Tesla Inc. has chosen one of the top leaders in the ranking who has risen through the ranks of technology companies. Those who know her say that her simple ways may be exactly what the CEO of Mercurial needs to get out of her way.

"Everything about her is rational, reasonable and warm. I'm not surprised she's getting the job, "said Scott McNealy, co-founder and former chairman of Sun Microsystems Inc., in a phone interview." If Elon listens to him, he'll have a lot more success. "

As president of Tesla, Denholm, 55, will be responsible for controlling the famed CEO Musk and guiding an electric car maker that is still in an expensive growth phase and vulnerable to financial difficulties. While Tesla has just celebrated an explosive quarter in which it made a rare profit, many analysts and investors suspect further capital increases may be needed before the company is stabilized.

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Leading the charge to strengthen Musk's supervision could be particularly tricky. Tesla's board of directors, headquartered in Denholm since 2014, has not proven effective in controlling some of its worst impulses this summer. His rise to the position of Chairman of the Board was precipitated by the dispute between Musk and the Securities and Exchange Commission of the United States about his tweets problematic private outlets.

Denholm began his career with Arthur Andersen in auditing and accounting, then left the firm to take up a position in the finance department of Toyota Motor Corp.'s Australian subsidiary. She joined Sun in 1996 and spent 11 years there, including the first group of leaders of the pioneering computer company. She refused to be interviewed.

"Supreme Competent"

Musk, 47, is a classic type of Silicon Valley founder, a quirky, product-centric visionary. The presidents who supervise them have often been themselves CEOs, or corporate leaders in other strategic roles. A president with a background in finance is not as common – although in the case of Tesla, it could actually be a strength: the relationship with the financial community is precisely what the builder seeks to improve.

"She seems to be extremely competent in financial communication," said Jeffrey Sonnenfeld, a leadership expert, who teaches at the Yale School of Management. "Of the possible choices, I think they made the best choice. His strengths are not his and vice versa.

Yet some consider Denholm too close to Musk. An agreement with the SEC in September stipulated that Tesla would strengthen a board that has long been criticized for being too close to its billionaire leader.

Denholm "provides a potential spark for change," said Gene Munster of Loup Ventures in a note. But Tesla must act on other actions, including sending half of the board to bring in directors with manufacturing experience, he said.

No Pushover

After Sun, Denholm worked at network equipment manufacturer Juniper Networks Inc., where she held the position of Executive Vice President and Chief Financial and Operations Officer. Its technological experience is an asset: Tesla's cars are constantly benefiting from new features via live software updates, and the company's batteries are increasingly being sold to utility companies. Denholm has also served on the board of directors of ABB Ltd., the Swedish-Swiss multinational that works closely with the public services.

"Robyn is very smart, tough and honest," said William F. Meehan, a lecturer in strategic management at Stanford's Graduate School of Business, a Juniper administrator while she was working there.

Denholm joined Telstra, Australia's largest telephone company, in January 2017, as chief operating officer and assumed CFO role on 1 October. His decision to retire from the CFO position quickly surprised many. Last month, she told the Australian press through a spokesperson that she was not running for the position of chairman of Tesla's board. Denholm, who is married and has grown children, lives in Sydney and it is unclear if she will return to California for the position of president.

"Robyn is brave but very practical. If she believes in something, she's fighting for her – it's not a dead end, "said Joe Pollard, Telstra's former marketing director, in an interview. "She's still focused on" how are we going to solve this problem. "Nothing has ever been forgotten and she will always speak for the customers, the company and the employees."

Like Silicon Valley, the Australian business community still has a lot to do in terms of gender equality. Denholm is eager to encourage more women to science, technology and engineering.

"She does not belong to the culture of the brothers and yet is not a naive person parachuting from the outside," said Sonnenfeld, Yale. "It's a rare news section on good governance."

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