Remember, the SEC's function is to protect investors. Likewise, the function of the Chairperson of the Board is to represent investors on the Board. The SEC d

Remember, the SEC's function is to protect investors. Likewise, the function of the Chairperson of the Board is to represent investors on the Board. The SEC didn't remove Musk as Chair to punish him for his actions. The settlement required Musk to step down as Chair to give investors the representation they're entitled to because Musk didn't fulfill the fiduciary obligations of the role.