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Tesla directors to pay up to $919 million to settle claims they overpaid themselves

1. Tesla directors will return up to $919 million due to overpayment allegations. 2. Settlement resolves a 2020 lawsuit regarding excessive director compensation. 3. Directors will repay stock worth $735 million and forgo $184 million in pay. 4. Judge awarded $176 million in fees to law firms for the lawsuit. 5. The outcome reiterates scrutiny on executive compensation at Tesla.

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FAQ

Why Neutral?

The settlement reduces excess compensation claims but may not significantly influence investor sentiment.

How important is it?

The settlement highlights governance issues that could affect investor confidence, particularly in executive compensation.

Why Short Term?

Immediate effects on Tesla's governance perception may influence short-term trading, but not long-term fundamentals.

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