Tesla Directors Settle Excessive Compensation Lawsuit for $735 Million

Tesla directors have agreed to pay $735 million to settle a lawsuit alleging that they were overpaid. The settlement resolves claims made by a retirement fund that challenged stock options granted to Tesla directors starting in June 2017. The settlement does not affect Elon Musk's $56 billion compensation package, which is being challenged in a separate lawsuit. The directors, including Larry Ellison, will return the equivalent value of 3.1 million Tesla stock options. As part of the settlement, the directors will not receive any compensation for 2021, 2022, and 2023, and the board will change the way compensation is determined.