Members of Tesla’s board of directors have agreed to return $735 million in stock awards to the company as part of a settlement that accused the executives of grossly overpaying themselves.
The settlement, one of the largest in corporate history, was filed in Delaware Chancery Court on Monday. In it, the directors have agreed to give back the money and enact changes to how board members receive compensation.
The directors cited in the lawsuit included CEO Elon Musk, Oracle Corp. co-founder Larry Ellison and Mr. Musk’s brother, Kimbal Musk.
The lawsuit alleged that the directors awarded themselves over $11 million worth of stock options from 2017 to 2020.
The lawsuit alleged that the directors breached their fiduciary duties by “awarding themselves excessive and unfair compensation.” In settling the suit, the executives admitted no wrongdoing.
Before the settlement is finalized, it must be reviewed and approved by Delaware Chancery Court Chief Judge Kathaleen St. Jude McCormick. She is expected to issue a ruling in the coming days.
