Tesla Settles $735M Lawsuit
  • 9 months ago
Tesla board directors, including CEO Elon Musk, will return over $735 million in stock awards and cash to resolve an investor lawsuit alleging improper self-awarded compensation packages. The settlement also involves implementing corporate-governance changes to address board-level compensation matters. The Police and Fire Retirement System of the City of Detroit claimed that Tesla directors excessively awarded themselves compensation from 2017 to 2020. As part of the settlement, board members must return stock or cash and forgo director compensation from 2021 onwards while hiring an independent compensation consultant. The total value of the shares being returned is $458,649,785, and the cash being handed back to the company is $276,616,720, as stated in court filings.
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