Judge Approves Tesla Directors’ Deal To End Excess Pay Case

A Delaware court has approved a settlement requiring Tesla directors, including Chairperson Robyn Denholm and James Murdoch, to return up to $919 million to the automaker to resolve allegations of excessive self-compensation, Reuters reported.

The ruling also awarded $176 million in fees and costs to the legal teams representing shareholders. I Photo: Tesla

The settlement mandates the directors return approximately $277 million in cash and $459 million in stock options while forfeiting an additional $184 million in options for the years 2021-2023.

The agreement is reportedly the second-largest settlement in the history of Delaware’s Court of Chancery.

Chancellor Kathaleen McCormick, who presided over the case, approved the deal during a telephonic hearing. Plaintiffs' attorney Andrew Dupre expressed satisfaction with the ruling, which also awarded $176 million in fees and costs to the legal teams representing shareholders.