Additional Coverage:
- Tesla board that gave itself nearly $1 billion in excess compensation must now return money (newsbreak.com)
Tesla’s board has agreed to return nearly $1 billion to settle a legal battle over excessive pay. The settlement follows allegations that the board, led by Robyn Denholm, enriched themselves at the expense of shareholders.
The deal requires board members to return $277 million in cash and $459 million in stock options. They will also forfeit $184 million in promised compensation. However, neither the board nor the company admits wrongdoing.
Tesla’s board has faced criticism for its lax oversight. It includes several business partners and personal friends of CEO Elon Musk, and proxy advisory firms have recommended against Denholm’s reelection.
Musk’s 2018 pay package, which he negotiated with himself, has been dubbed the “largest in human history.” The court found that the board failed to act independently in approving the package.
Despite attempts to address the issue, Tesla continues to face legal challenges. The company recently appealed a court ruling upholding the previous ruling against Musk’s pay package. The appeal will now go before the Delaware Supreme Court.