A judge has officially approved a settlement in a case brought by Tesla shareholders against board members who will now have to return stock, cash, and give up on stock options worth a total of nearly $1 billion.
Let me start this article with a quote from Tesla CEO Elon Musk:
Tesla will never settle a case where we’re in the right, and never contest a case where we’re in the wrong.
Today, Chancellor Kathaleen McCormick approved a settlement agreement between Tesla and all of its 2017-2020 Board members and the City of Detroit Police and Fire Pension Formula on behalf of Tesla shareholders on which shareholders over shareholders’ shareholders. superior compensation.
The agreement reported for the first time in July 2023, but only officially approves and informed us some more details.
The shareholder idea that Tesla’s Board of Trustees members were excessively supported by a lot of millions of dollars between 2017 and 2020, when the average compensation of a Company S Board member
According to the regulations, the members of the Board of Directors are about to return to Tesla $ 277 million in cash, $ 459 million in percentage to acquire characteristics and renounce $ 184 million in characteristics for the purchase characteristics of percentages assigned for 2021-2023.
That increases to almost one billion dollars.
The board members include Kimbal Musk, Elon’s brother, Brad Buss, Ira Ehrenpreis, Antonio Gracias, Stephen Jurvetson, all close friends of Elon Musk and people who have financial dealings with Musk outside of Tesla, Linda Johnson Rice, Kathleen Wilson-Thompson, Hiromichi Mizuno and Larry Ellison, the co-founder of Oracle Corp and also a close friend of Musk.
Even if Tesla’s price is motivated through an incredibly talented control team, and even if you believe the team deserves a disproportionate refund accordingly, the Board of Directors has little/nothing to do with the operational activities that spur the company’s savvy fortunes. Taking care of an audit committee is not a vital role in the evaluation of the company. In fact, I could say that the Nikola Board of Trustees deserves big dollars!After all, they were exposed to Trevor Milton’s duty and guilty for looking to the right for a CEO who constantly lied and misled shareholders, regulators and the public and made ridiculous claims about the capabilities of his product and shocking. . . intelligent example. You get the point. Forums aren’t so much price.
Within the framework of the regulation, Tesla or the Board of Directors admits any reprehensible act.
Musk did not take refund as a component of the Board, however, he is concerned in a similar case for his own CEO reimbursement of $ 55 billion, which annulled the same trial of steps after finding it not negotiated or presented to the Shareholders at Faith Smart Faith.
The board members who won this “overpayment” were also revealed to be the one who “negotiated” the Musk CEO’s refund package.
The case heads to the Delaware Supreme Court, as previously reported today.
Fred is a chief editor and last year student at Electk.
It can be sent on Twitter (DMS Open) or through e-mail: Fred@9to5mac. com
Thanks to Zalkon. com, you can check the Fred portfolio and download investment concepts per month on green shares.