Tesla executives return $1 billion to company in court ruling

A Delaware judge has approved a settlement that requires a number of Tesla executives to return a whopping $919 million to the company, after allegations that they received excessive compensation during their tenure.

The settlement includes the return of stocks and cash options worth up to $735 million, in addition to waiving three years of wages worth $184 million, according to a report published by “TechCrunch.”

The report indicated that the prominent names included in the settlement include Chairman of the Board Robyn Denholm, businessman Larry Ellison, Kimbal Musk, and James Murdoch.

The lawsuit, filed by the Detroit Police and Fire Retirement System in 2020, challenged the executives’ compensation during the period from 2017 to 2020, describing it as “excessive.” The case was reviewed by Counsel Kathleen McCormick, who has a history of high-profile cases against Tesla.

The three law firms that brought the case were awarded $176 million in legal fees and costs, but the firm asked the judge to reduce the fees to $64 million. The lawyers will not get their money unless the settlement is implemented.