Tesla Board to Return Nearly $1 Billion in Settlement Over Excessive Pay

A Delaware judge approved the settlement, resolving shareholder allegations of overcompensation, while Tesla appeals a separate ruling on Elon Musk's $56 billion CEO pay package.

• Tesla board members from 2017 to 2020 will return $277 million in cash, $459 million in stock options, and forgo $184 million in future stock options as part of the nearly $1 billion settlement.
• The settlement resolves a lawsuit filed by the Police and Fire Retirement System of the City of Detroit, which accused Tesla directors of excessive compensation far above the S&P 500 average.
• The board members, including Kimbal Musk, Larry Ellison, and others close to Elon Musk, did not admit wrongdoing under the settlement terms.
• Judge Kathaleen McCormick also awarded $176 million in legal fees to the plaintiffs' attorneys, marking one of the largest fee awards in Delaware shareholder litigation history.
• Separately, Tesla has appealed the judge's decision to rescind Elon Musk's $56 billion CEO compensation package, which was deemed improperly negotiated and presented to shareholders.

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