Tesla will ask shareholders to reinstate voided $56 billion stock grant for Elon Musk

Tesla plans to request shareholders to reinstate CEO Elon Musk’s $56 billion pay package from 2018 after a court voided the stock grant earlier this year. The court described the grant as ‘deeply flawed.’ In a preliminary proxy filing, Tesla announced the move just days after informing employees of a 10% headcount reduction. Tesla plans to ask shareholders to approve the company’s move of incorporation from Delaware to Texas. The company has hired a proxy solicitor and will spend an undisclosed amount to secure the votes for the proposals. Musk’s pay package was nullified after a shareholder won a lawsuit. In the filing, Tesla questioned the court’s decision, stating that the board believed it ignored evidence presented at trial and made errors in fact and law. Tesla also highlighted that ‘dozens of institutional stockholders’ disagreed with the court’s ruling.