Tesla Seeks to Cut Attorney Fees in $919M Director Pay Settlement

Tesla urged a judge to reject a $230 million fee request by attorneys who won a settlement in a dispute over director pay. Tesla recommended a $64 million fee instead.

The attorneys represented a pension fund that sued Tesla's directors for excessive compensation from 2017-2020.

The directors agreed to return $735 million to Tesla as part of a $919 million settlement. The directors said their pay was fair.

Tesla said the settlement benefit to the company was $295 million, far less than the attorneys' valuation. The difference involved stock options.

A Tesla shareholder objected to the settlement holding directors liable as a group rather than specifying each director's liability.