Tesla (TSLA) has settled a long-running dispute about director pay—but it’s not the $56 billion package for CEO Elon Musk that has been finally agreed upon.
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Board members, including James Murdoch, won court approval on Wednesday, January 8, for a pay settlement worth up to $919 million, according to Reuters.
Apparently, Murdoch and other board members, including Chair Robin Denholm, will return around $277 million in cash, $459 million in stock options, and forgo stock options for 2021–2023 worth $184 million.
The ruling by Delaware judge Kathaleen McCormick, who has twice blocked Musk’s blockbuster pay award, settles a 2020 lawsuit brought by the Police and Fire Retirement System of the City of Detroit, which had said director pay between 2017 and 2020 was excessive.
By contrast, Musk did not receive any compensation for his role as a Tesla board member.
TSLA Shareholders Appeal Musk Ruling
Last month, McCormick ruled Musk was still not entitled to a $56 billion pay deal, despite shareholders in the EV-maker backing the award—a ruling that reiterated her decision last January.
But now, some TSLA shareholders, including ARK Investment Management, the fund behind the ARK Innovation ETF (ARKK), are appealing the decision.
Shareholders have twice—in 2018 and 2024—voted to back the bumper pay award.
“We want on this appeal to re-enfranchise Tesla shareholders and make their votes count,” attorney Tom Grady of GradyLaw, one of the firms representing the investors, told Bloomberg Law.
What Is the Prediction for TSLA Stock?
Overall, Wall Street has a Hold consensus rating on TSLA stock, based on 13 Buys, 12 Holds, and nine Sells. The average TSLA price target of $320.90 implies almost 19% downside potential from current levels. Shares of TSLA have increased by 68% over the past year.
