CRA Insights

Tesla Board compensation derivative suit: Implications of the Final Judgment

April 7, 2025
Scales of justice | Charles River Associates
In the follow-up to a prior InsightsCRA’s Aaron Dolgoff, Zawadi Lemayian, and Rahul Chhabra, examine the Delaware Chancery Court’s Final Judgment that approved a settlement in the lawsuit brought against the non-employee directors of Tesla, alleging they had awarded themselves outsized compensation.
In this piece, the authors explore the impact of the Final Judgment in Tesla’s board compensation derivative suit on the value of the settlement and the methodologies that experts use to value forgone compensation in litigation.