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Tesla directors pay $735M to settle claims they overpaid themselves
Variety and Tech
2023-07-18 | 11:11
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Tesla directors pay $735M to settle claims they overpaid themselves
Tesla’s directors will return $735 million to the company to settle claims from shareholders that they excessively overpaid themselves, according to a Monday court filing.
The settlement concludes a 2020 lawsuit from a retirement fund that holds Tesla stock. The Police and Fire Retirement System of the City of Detroit had criticized stock options granted to Tesla directors — including CEO Elon Musk, his brother Kimbal Musk and Oracle co-founder Larry Ellison — starting in June 2017.
Musk is also separately under scrutiny for his own $56 billion compensation package, which is facing its own lawsuit that went to trial last year. Shareholder Richard Tornetta filed suit against Tesla in 2019 to rescind Musk’s 2018 pay deal. Tornetta claims the package is “the largest compensation grant in human history” and it is unjustly paid to Musk — whom he called a “part-time CEO” — without demanding that the executive focus entirely on Tesla.
Read the full story at:
https://techcrunch.com/2023/07/17/tesla-directors-pay-735m-to-settle-claims-they-overpaid-themselves/
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