Tesla directors agree to return $735m to settle claims they were grossly overpaid

Shareholders sued the directors over stock option awards in 2017, accusing them of unfair and excessive compensation

Tesla Inc’s directors will return $735m to the company to settle claims they grossly overpaid themselves in one of the largest shareholder settlements of its kind, according to a Monday filing in a Delaware court.

The settlement resolves a 2020 lawsuit by a retirement fund which holds Tesla stock and challenged stock options that were granted to Tesla directors starting in June 2017.