Tesla leads charge to defend Elon Musk’s $56bn pay package

After the deal was struck down in court in January, investors will be asked to endorse it again this week

Tesla’s shares are down 28% this year. It has warned of “notably” slower growth as sales in its second-largest market, China, fall. A defect forced a recall of its highly anticipated latest product. The chief executive spends a lot of time at other companies or generating controversy. How do you reward him? With a record-breaking $56bn pay deal, if Tesla gets its way at its annual meeting on Thursday.

Elon Musk’s pay package – the largest ever granted to an executive at a US-listed company – is not based on Tesla’s current, or future, performance. It was granted in 2018, and built around targets for Tesla’s stock value, revenue and profitability.