Tesla Board to Return $735 Million in Stock Awards to End Suit Over Pay Packages
- Pension fund accused directors of grossly overpaid themselves
- Co-founder Elon Musk is one of directors covered by the accord
Tesla cars at the Tesla factory in Fremont, California.
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Tesla Inc. directors, including Chief Executive Officer Elon Musk, agreed to return more than $735 million in stock awards and cash to settle an investor lawsuit accusing board members of improperly giving themselves massive compensation packages.
The directors — including Oracle Corp. founder Larry Ellison; James Murdoch, son of media mogul Rupert Murdoch; and Musk’s brother, Kimbal Musk — agreed to hand over the stock grants and cash for already exercised options, along with making corporate-governance changes to the way board-level compensation issues are reviewed, according to court filings.