Court forces Tesla board members to return $735m in remuneration - Elon Musk risks forfeiting $56bn

Members of the board of directors of Tesla will be forced to return the company $735 million. This amount was paid to them as remuneration, which was recognised by the court as unreasonably high.

Here's What We Know

The board members received $735 million from June 2017 to 2020. The rewards were paid in the form of securities. During that time, board members received approximately 11 million shares of the US company.

A separate lawsuit has been filed in court challenging the fairness of the $56bn payment to Tesla CEO Elon Musk. A judgement in that case is expected to be handed down at a later date.

Going back to Tesla's board members, the court forced them to reconsider their remuneration system as the current one allows them to receive huge amounts of compensation after the sale of the company's shares. They also agreed to waive their remuneration for 2021-2023.

Source: CNBC