The deal, set in 2018, includes no salary or bonus but is based on Tesla's stock price reaching certain milestones.

The announcement comes after Musk announced plans to reduce the workforce by over 10%.

In 2018, Tesla's board approved a compensation package for Elon Musk that tied his rewards to the company's market value reaching as high as $650 billion over a decade.

However, in 2021, Delaware-based Judge Kathaleen McCormick ruled that the deal was unfair to shareholders, as directors may have been influenced by Musk's "superstar appeal" and did not fully inform shareholders.

This decision outraged Musk, who threatened to move Tesla's headquarters from Delaware to Texas.

On Monday, Tesla filed paperwork asking shareholders to approve the move and re-approve the 2018 pay package.

Board chair Robyn Denholm expressed concern in a letter that Elon Musk, who has not been paid by Tesla for six years, was not fairly compensated according to corporate law.

The board disagreed with a Delaware court ruling and Musk's 2023 compensation was listed as $0 in the regulatory filing, as he does not receive a salary and is compensated through stock options.