Tesla Inc. paid its chairman and founder, Elon Musk, $ 3 million in compensation for D&O insurance to defend, settle disputes, or make court decisions. This was reported by Insurance Business.
This insurance covers the expenses of the members of the board of directors, which are not included in the general expenses of the top management of the company.
In June 2020, Musk and Tesla signed an agreement under which the company undertook to provide compensation for damages for D&O for 90 days under Musk’s insurance for $ 100 million.
At the same time, in the previous version of the contract, Tesla undertook to pay Mask $ 1 million to cover D&O. This amount was confirmed to the publication by insiders in insurance companies.
Tesla Mask’s $ 3 million payment was based on the cost of a market premium of 90 days and reduced by half.
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