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Tesla adds Chipotle executive Hartung to board of directors

by TheAdviserMagazine
5 months ago
in Business
Reading Time: 2 mins read
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Tesla adds Chipotle executive Hartung to board of directors
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Tesla Inc. is adding a longtime executive of restaurant chain Chipotle Mexican Grill Inc. to its board as the carmaker grapples with thorny questions over executive compensation and its strategic direction.

Jack Hartung will join as a director and member of the board’s audit committee as of June 1, Tesla said Friday in a regulatory filing. Hartung, 67, was chief financial officer of Chipotle for more than two decades before recently transitioning to chief strategy officer. The burrito chain announced in July of last year that he planned to retire.

The addition suggests Tesla is expanding its eight-member board, which currently includes Chief Executive Officer Elon Musk, Airbnb Inc. co-founder Joe Gebbia, Tesla co-founder JB Straubel, and business executive Robyn Denholm, who serves as chair.

Hartung joins at a delicate moment for Tesla, which is struggling with declining sales and a broad consumer backlash against Musk’s work for and association with US President Donald Trump. Some shareholders also have raised concerns about a perceived lack of independence among Tesla directors, which includes Musk’s brother, Kimbal.

Tesla disclosed in regulatory filing last month that the board had established a special committee to consider compensation matters involving Musk. A Delaware court ruled in January of last year that the massive pay package directors set up for the CEO in 2018 should be rescinded. The company has appealed to the state’s supreme court.

Tesla shares rose 1.5% at 9:44 a.m. in New York. The stock fell 15% this year through Thursday’s close.

This story was originally featured on Fortune.com



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