A judge in Delaware has approved a settlement that will see Tesla executives — including chairman Robin Denholm, Oracle founder Larry Ellison, Kimball Musk and James Murdoch — repay the automaker up to $919 million, formally resolving allegations they overpaid themselves. Per Reuters.
The settlement ends a 2020 lawsuit by the City of Detroit's Police and Fire Retirement System that challenged director compensation from 2017 to 2020 as excessive. Directors must return stock and options The price is up to $735 million and give up three years of salary allegedly worth $184 million.
Chancellor Kathleen McCormick, the judge overseeing the case, awarded $176 million in fees and costs to three law firms that brought the case to court on a contingency basis, meaning they would only be paid if they prevailed. Tesla asked McCormick to set a $64 million fee.
McCormick is the same judge who ruled against Tesla CEO Elon Musk's exorbitant pay package Even if shareholders vote to “re-authorize” the deal.