Skip to main content

Tesla directors pay $735M to settle claims they overpaid themselves

Tesla’s directors will return $735 million to the company to settle claims from shareholders that they excessively overpaid themselves, according to a Monday court filing.

The settlement concludes a 2020 lawsuit from a retirement fund that holds Tesla stock. The Police and Fire Retirement System of the City of Detroit had criticized stock options granted to Tesla directors — including CEO Elon Musk, his brother Kimbal Musk and Oracle co-founder Larry Ellison — starting in June 2017.

Musk is also separately under scrutiny for his own $56 billion compensation package, which is facing its own lawsuit that went to trial last year. Shareholder Richard Tornetta filed suit against Tesla in 2019 to rescind Musk’s 2018 pay deal. Tornetta claims the package is “the largest compensation grant in human history” and it is unjustly paid to Musk — whom he called a “part-time CEO” — without demanding that the executive focus entirely on Tesla.

A ruling is soon expected on Musk’s case.

Tesla’s directors were accused of awarding themselves around 11 million stock options from 2017 to 2020, which shareholders say is grossly in excess of the standard for corporate boards. They agreed to return the equivalent value of 3.1 million Tesla stock options, the filing shows and Reuters reports.

Tesla argued that its directors acted in good faith and in the best interests of Tesla stockholders, but settled to avoid risk of litigation against themselves and the company. The EV maker defended itself by saying the company went through unprecedented growth, which shot Tesla’s stock price up 10x, which caused the stock options award to directors and Musk to rise in value. The company said it used stock options to ensure the directors’ incentives lined up with investor goals.

As part of the deal, the directors also agreed to not receive compensation for 2021, 2022 and 2023. The board will also have to change the way compensation is determined — something to look out for at the next shareholder meeting.

The settlement, one of the largest ever for a similar case in the Court of Chancery, will be paid directly to Tesla to benefit the company.

Jury selection begins for Tesla racial discrimination lawsuit



from TechCrunch https://ift.tt/KPlYgVn
via IFTTT
Labels:

Comments

Post a Comment

Popular posts from this blog

The Silent Revolution of On-Device AI: Why the Cloud Is No Longer King

Introduction For years, artificial intelligence has meant one thing: the cloud. Whether you’re asking ChatGPT a question, editing a photo with AI tools, or getting recommendations on Netflix — those decisions happen on distant servers, not your device. But that’s changing. Thanks to major advances in silicon, model compression, and memory architecture, AI is quietly migrating from giant data centres to the palm of your hand. Your phone, your laptop, your smartwatch — all are becoming AI engines in their own right. It’s a shift that redefines not just how AI works, but who controls it, how private it is, and what it can do for you. This article explores the rise of on-device AI — how it works, why it matters, and why the cloud’s days as the centre of the AI universe might be numbered. What Is On-Device AI? On-device AI refers to machine learning models that run locally on your smartphone, tablet, laptop, or edge device — without needing constant access to the cloud. In practi...
1 comment
Read more

Apple’s AI Push: Everything We Know About Apple Intelligence So Far

Apple’s WWDC 2025 confirmed what many suspected: Apple is finally making a serious leap into artificial intelligence. Dubbed “Apple Intelligence,” the suite of AI-powered tools, enhancements, and integrations marks the company’s biggest software evolution in a decade. But unlike competitors racing to plug AI into everything, Apple is taking a slower, more deliberate approach — one rooted in privacy, on-device processing, and ecosystem synergy. If you’re wondering what Apple Intelligence actually is, how it works, and what it means for your iPhone, iPad, or Mac, you’re in the right place. This article breaks it all down.   What Is Apple Intelligence? Let’s get the terminology clear first. Apple Intelligence isn’t a product — it’s a platform. It’s not just a chatbot. It’s a system-wide integration of generative AI, machine learning, and personal context awareness, embedded across Apple’s OS platforms. Think of it as a foundational AI layer stitched into iOS 18, iPadOS 18, and m...
Post a Comment
Read more

Billionaire clothing dynasty heiress launches Everybody & Everyone to make fashion sustainable

Veronica Chou’s family has made its fortune at the forefront of the fast fashion business through investments in companies like Michael Kors and Tommy Hilfiger . But now, the heiress to an estimated $2.1 billion fortune is launching her own company, Everybody & Everyone , to prove that the fashion industry can be both environmentally sustainable and profitable. There’s no argument about the negative impacts of the fashion industry on the environment. The textiles industry primarily uses non-renewable resources — on the order of 98 million tons per year. That includes the oil to make synthetic fibers, fertilizers to grow cotton, and toxic chemicals to dye, treat, and produce the textiles used to make clothes. The greenhouse gas footprint from textiles production was roughly 1.2 billion tons of CO2 equivalent in 2015 — more than all international flights and maritime shipments combined (and a lot of those maritime shipments and international flights were hauling clothes). The lit...
Post a Comment
Read more