In a recent turn of events, Tesla Inc’s board members have opted to settle a lawsuit brought forward by shareholders. The suit had contested the directors’ compensation, resulting in them relinquishing the value of 3.1 million stock options, equating to $735 million, back to the company.
This settlement was revealed in a court filing in Delaware this past Monday. The lawsuit, initiated in 2020 by a retirement fund holding Tesla shares, objected to stock options granted to Tesla directors from June 2017 onwards.
Importantly, the settlement leaves untouched the whopping $56-billion compensation package of Tesla’s CEO, Elon Musk, which is under dispute in another, unrelated lawsuit. The judgment for that case is expected imminently.
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