The electric vehicle maker will ask shareholders to vote again on a multibillion-dollar compensation package that was voided by a judge in January.
Robyn Denholm, who has led the electric car company’s board for more than five years, has been criticized for not serving as a check on Mr. Musk.
The company’s board of directors will now decide whether to appeal the decision, change where Tesla is incorporated or negotiate a new pay package.
Shareholders had sued, arguing that Mr. Musk’s compensation — which helped make him the world’s richest person — was excessive.
Autoworkers want, and deserve, a big raise. But they are asking for too much.
The union targeted one factory run by General Motors, one by Ford and one by Stellantis. Prolonged walkouts could hurt the U.S. economy and President Biden.
Corporate governance experts say the electric-car maker’s directors may need to rein in the chief executive, with whom many have personal ties.
The billionaire chief executive testified about a multibillion-dollar compensation package the electric car company’s board put in place in 2018.
A shareholder is asking the court to void a 2018 compensation package that has paid the chief executive nearly $50 billion.
The gap with workers widened even further as public companies granted top executives rich pay packages partly inspired by Tesla.