August 17, 2023
The Other Tesla Compensation Litigation
Over on The Advisors’ Blog on CompensationStandards.com, I recently blogged about a settlement agreement in a compensation-related derivative suit that really is one for the books. The litigation challenged the reasonableness of Tesla’s director compensation, and the settlement includes the clawback & forfeiture of compensation valued at $735 million. The blog post describes the mechanics of the clawback terms and discusses what this means for the director defendants.
In a follow-up blog, Liz gave more detail on the “corporate governance reforms” also contemplated by the settlement, including a “director say-on-pay” vote, which — although not a widespread practice — Liz explains, isn’t necessarily a new thing.
– Meredith Ervine