Tesla directors agree to return $735 million in compensation to settle shareholder lawsuit

A retirement fund filed a lawsuit in 2020 challenging stock options granted to Tesla's board starting in 2017.
The settlement does not affect Elon Musk's separate $56 billion compensation package which is being challenged in another lawsuit.
As part of the settlement, directors will not receive any compensation for 2021-2023 and changes will be made to how compensation is determined.
Directors deny any wrongdoing but settled to avoid further litigation and uncertainty.
The settlement still needs final approval from the Delaware Chancery Court to become official.