Tesla Asks Shareholders To Reapprove $56 Billion Pay Deal For Elon Musk

Musk's payout -- worth as much as $55.8 billion in 2018 -- was voided in January by a Delaware court.

Electric vehicle maker Tesla will ask its shareholders to vote again on a $56 billion compensation package they had approved in 2018 for CEO Elon Musk before it was squashed by a US court earlier this year.

In a filing with federal regulators on Wednesday, Tesla Chair Robyn Denholm said the board of directors stood by the original package and argued that the company's "entrepreneurial spirit" had always been one of "big risks for the chance of big rewards."

Musk's payout -- worth as much as $55.8 billion in 2018 -- was voided in January by a Delaware court, ruling on a complaint by an individual shareholder alleging that Musk had dictated his terms to the board, which was not sufficiently independent from its star CEO.