Elon Musk has agreed to step down as chairman of Tesla’s board for three years as part of an agreement with the SEC to resolve a securities fraud case. He will also pay a $20 million fine, the New York Times reported.
The settlement will require Musk to relinquish his role as chairman for at least three years, but he will able to remain as CEO.
The Securities and Exchange Commission announced the settlement Saturday, just two days after filing a case seeking to oust Musk as CEO.
Tesla has also agreed to appoint two new independent directors to its board and establish a new committee of independent directors and put in place additional controls and procedures to oversee Musk’s communications, according to the SEC