2023-07-18 07:12:00
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18.07.2023 10:12, Alexey Razin
In 2020, one of Tesla’s institutional investors, a pension fund, filed a lawsuit against members of the company’s board of directors, accusing them of receiving unreasonably high rewards for their activities in the form of shares that they have received since June 2017. The court eventually ordered Tesla board members to return $735 million to the company.
Image Source: Tesla
As explains CNBC, a decision on a separate lawsuit against Elon Musk, which disputes the fairness of paying him $ 56 billion in compensation for work, has not yet been made, and therefore will be made a little later. Board members, however, will have to repay the company $735 million that was paid to them in the form of Tesla shares between June 2017 and 2020. During this time, members of the board of directors of the company received 11 million Tesla shares as a reward, of which they undertake to return 3.1 million shares in value terms.
Tesla board members also commit to refrain from receiving 2021, 2022, and 2023 rewards in this form, as well as to review the compensation system, which until then allowed them to receive substantial amounts after the company’s shares were sold on the market. Tesla tried to protect the interests of board members, citing a significant increase in stock prices, which led to proportional enrichment of board members, as well as mentioning the community of interests of the company’s management and investors.
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