Once more, Tesla is pursuing the approval to grant its CEO, Elon Musk, what could be the largest pay package ever seen in corporate America, valued at $56 billion (£44.9 billion). The electric vehicle (EV) company is seeking shareholders’ votes on this exceptional compensation plan, which had initially been established in 2018 and set a record-breaking precedent. However, the proposal faced rejection by a US judge in January, who characterized it as “an unfathomable sum.” This development comes shortly after Musk revealed intentions to reduce Tesla’s global workforce by more than 10%.

In a memo addressed to staff, Musk expressed his disdain for the task, stating that there was nothing he detested more, but emphasized that it was a necessary action. Despite the absence of salary or bonus in the proposed compensation, Musk’s remuneration has garnered attention, particularly due to the 2018 agreement that hinges on Tesla’s market value reaching up to $650 billion over a decade. Presently, the EV company’s stock is valued at $500.36 billion, as per available data.

Following the rejection of the pay deal by Delaware-based Judge Kathaleen McCormick, who deemed it unfair to shareholders, Musk expressed his displeasure and even contemplated relocating Tesla’s headquarters to Texas. Tesla has now sought shareholders’ approval to proceed with the move and reaffirm the 2018 pay package. Board chair Robyn Denholm emphasized in a letter included in the regulatory filing that Musk had not received any compensation for his work at Tesla over the past six years, which was perceived as fundamentally unfair by both the board and many shareholders.

Despite the court ruling, Tesla intends to pursue the original 2018 compensation plan and plans to appeal the decision. The timing of the re-vote is challenging for the company, as it faces reduced demand for EVs and prepares for quarterly earnings disclosure. Musk, meanwhile, is striving to rebuild his reputation following a turbulent period, including vehicle recalls, involvement in controversies, and challenges with his social media platform, X. Nevertheless, Musk’s net worth remains substantial, estimated between $198 billion and $220 billion as of November 2023, making him the wealthiest individual globally according to Bloomberg and Forbes.