Dealing with criticism that it’s overly beholden to Elon Musk, Tesla’s board of administrators mentioned on Wednesday that it might basically give him every part he wished, together with the most important pay package deal in company historical past.

If setbacks in courtroom and the automotive market have induced any soul looking out amongst Tesla’s board, there was no signal of it within the newest announcement. If something, the board doubled down on backing Mr. Musk, Tesla’s chief government, risking riling up activist buyers and extra litigation.

The board’s determination to ask shareholders to endorse a compensation plan for Mr. Musk that’s value about $47 billion got here lower than three months after a Delaware choose voided the identical 10-year pay package deal. The choose mentioned that it was extreme and that the corporate had did not correctly disclose particulars about it to shareholders who permitted it in 2018.

Tesla will now present shareholders extra details about how the plan was devised and ask them to approve it once more. That vote will happen as buyers are more and more fearful concerning the electrical automotive firm as a result of its gross sales are declining, and its inventory has fallen greater than one-third this 12 months. As well as, Mr. Musk has not introduced a lot of a plan to revive the corporate’s momentum.

Greg Varallo, a lawyer who represented shareholders within the Delaware case, declined to remark Wednesday on steps his crew would possibly take. However the board’s motion is prone to immediate extra lawsuits towards the corporate, which is beneath authorized strain from regulators, clients and individuals who say they’ve been victims of faults in Tesla’s driver-assistance system.

Two days earlier than the transfer to revive Mr. Musk’s standing as one of many world’s richest folks, Tesla advised staff that it might lay off 10 p.c of its work pressure, or about 14,000 folks.

“The optics definitely don’t look good,” mentioned Jason Schloetzer, an affiliate professor at Georgetown College’s McDonough College of Enterprise who research company governance.

There is no such thing as a signal that Tesla’s board is making an attempt to exert tighter management over Mr. Musk, whose endorsement of right-wing conspiracy theories has alienated many potential clients. Quite the opposite, in documents filed Wednesday for a shareholders assembly in June, the board signaled that it stood firmly behind Mr. Musk.

The board requested shareholders to approve transferring Tesla’s company domicile to Texas from Delaware, a change Mr. Musk referred to as for on the day the Delaware courtroom struck down his pay package deal in January. And the board requested shareholders to reappoint two administrators with shut ties to Mr. Musk: the media government James Murdoch, who has vacationed with Mr. Musk, and Kimbal Musk, his brother.

The corporate’s strikes successfully amounted to a rebuke of the choose who struck down Mr. Musk’s 2018 pay plan, Chancellor Kathaleen St. J. McCormick of the Delaware Court docket of Chancery. In her ruling, the choose chided the board for lax oversight of Mr. Musk.

“The board and the shareholders had been managed by Musk,” Lynne Vincent, affiliate professor at Syracuse College’s Whitman College of Administration, mentioned of the courtroom determination. “The individuals who had been advocating for this deal weren’t energetic protectors of shareholder pursuits. They had been embedded in his private lives and monetary lives.”

By asking shareholders to reinstate Mr. Musk’s compensation, Tesla’s board is making an attempt to render Chancellor McCormick’s determination moot.

“We don’t agree with what the Delaware Court docket determined, and we don’t suppose that what the Delaware Court docket mentioned is how company legislation ought to or does work,” Robyn Denholm, the chair of Tesla’s board, mentioned in a message to shareholders Wednesday. The corporate has individually mentioned it plans to attraction the choose’s determination.

Ms. Denholm mentioned it might be “basically unfair” to disclaim Mr. Musk compensation that he had been promised. She famous that Tesla had not paid Mr. Musk something for the previous six years apart from the compensation plan that was struck down.

However Mr. Musk has earned billions from his Tesla shares. Brian Dunn, a former compensation guide and visiting lecturer at Cornell College’s College of Industrial and Labor Relations, mentioned pay plans had been supposed to offer incentives for executives to carry out sooner or later, not reward them for work prior to now.

“There may be nothing within the plan that requires him to deal with Tesla,” Mr. Dunn mentioned, noting Mr. Musk’s possession of X, the social media platform, and ventures like SpaceX. “It’s proof of the board nonetheless being very complacent,” he added.

Some buyers discovered the equity argument jarring given Tesla’s current troubles.

“Asking for folks to approve one of many largest pay packages of all time, when the corporate is failing to satisfy present targets and terminating 10 p.c of staff, it’s horrible timing,” mentioned Antoine Argouges, chief government of Tulipshare, an activist investor group.

Tulipshare has proposed a shareholder vote on whether or not government compensation at Tesla needs to be contingent on assembly requirements on carbon emissions and employee rights. Tesla’s board opposes the proposal.

Ms. Denholm framed the choice to go away Delaware as a logical step for a corporation with a rising presence in Texas, somewhat than an try to flee the state’s justice system. “We’ve got a major variety of manufacturing, operations and engineering staff in Texas, and our executives are primarily based there,” she advised shareholders.

She insisted that the board is impartial. The board member who assessed Mr. Musk’s compensation plan, Ms. Denholm mentioned, was Kathleen Wilson-Thompson, a former human sources government at Kellogg and Walgreens who doesn’t seem to have any private ties to him.

Tesla’s board members are listening to shareholders, the board mentioned in a proxy assertion filed on Wednesday. “The board maintains an energetic, year-round dialogue with our largest stockholders to make sure that Tesla’s board and administration perceive and think about the problems that matter most to our stockholders,” the assertion mentioned.

Ms. Denholm and the board didn’t reply to statements Mr. Musk made in January that if he wasn’t given management of over 25 p.c of the corporate’s inventory he would pursue sure ventures exterior Tesla. He presently owns about 13 p.c of Tesla’s shares, down from 22 p.c after he offered billions of {dollars} of inventory to finance the acquisition of Twitter, now often called X.

Ms. Vincent of Syracuse College mentioned Tesla had provided little data on how selections on layoffs and compensation had been made. “I don’t suppose any of this has been clear,” she mentioned.

Tesla’s board didn’t handle considerations that the corporate was dropping its grip available on the market for electrical vehicles. Ms. Denholm introduced a rosy view of Tesla’s future.

“Tesla is a nimble group with an unmatched tempo of innovation that has resulted in services that surpass all expectations pushed by visionary management and, most significantly, one of the best and most devoted staff on the planet,” she mentioned in her message to shareholders.

The choice to fireplace 10 p.c of these staff, she added, was wanted to scale back prices, improve productiveness and “put together us for our subsequent section of development.”