Tesla's directors will reimburse the overpayment of $735 million.

A settlement ends a 2020 lawsuit over stock options with a retirement fund.

Tesla and Elon Musk are notorious for winning court battles.

Directors won't be paid from 2021 to 2023.

Tesla claims that stock options are in line with investor goals.

A shareholder sued Musk's compensation arrangement in 2019.

From 2017 to 2020, directors granted themselves 11 million stock options.

Directors compromise to avoid additional litigation while denying misconduct.