Tesla $919 Million Board Pay Pact Draws Shareholder Objections

A Tesla Inc. investor is objecting to a $919 million legal settlement over concerns that CEO Elon Musk could curry favor with other board members—who set the billionaire’s compensation—by paying the full amount himself.

The objection was filed in Delaware’s Chancery Court on Thursday, about two weeks after the shareholder attorneys who negotiated the pact requested $230 million in legal fees for their work. Chancellor Kathaleen St. J. McCormick, the court’s chief judge, is currently weighing the settlement. She’s also presiding over a separate case challenging Musk’s $55 billion pay package.

If Musk makes the entire payment, “he will ...