Tesla board that gave itself nearly $1 billion in excess compensation must now return money
FortuneJAN 2025
Tesla Directors to Return $919M in Historic Pay Settlement
Above: James Murdoch departs court in San Francisco, Calif., US, on Feb. 1, 2023. Image credit: David Paul Morris/Bloomberg/Contributor via Getty Images
The Spin
Narrative A
The compensation packages were justified given Tesla's extraordinary performance, with the stock value increasing tenfold during the period in question, reflecting the directors' contributions to the company's success. Tesla should consider contesting this decision to protect its ability to reward success.