Tesla paid CEO Musk $3M for 90 days worth of indemnity coverage
Meanwhile, CNBC reported that the company paid Musk $3 million for 90 days worth of business insurance that indemnifies directors and officers of the company from certain legal expenses. Tesla said it did not extend the term of the indemnification deal with its CEO and instead “bound a customary directors’ and officers’ liability insurance policy with third-party carriers.”
In April, Tesla said it would forego directors and officers liability insurance for a year. The company would instead pay Musk personally to cover any company or board members’ costs for legal defenses, settlements, or judgments against them.
According to a regulatory filing, Musk entered into an indemnification agreement with the company for an interim of 90 days following the CEO’s purchase of common stock in February in a public offering.
The American electric vehicle and clean energy company is facing different lawsuits, including the long-term performance of batteries in its cars and its move to acquire solar energy provider SolarCity.
In return, the filing says, Tesla agreed to pay Musk a total of $3 million, a rate the California-based electric vehicle company said was based on a “market-based premium” as prorated for 90 days then discounted by half.
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