In a bold move aimed at securing shareholder approval for his colossal pay package, Elon Musk, CEO of Tesla, has offered shareholders the chance to win a personal tour of the Tesla Gigafactory in Austin, Texas. Musk's proposed compensation plan, valued at a staggering $56 billion in stock options, is set to make him the highest-earning corporate CEO in the United States. However, before the plan can be set into motion, it requires the seal of approval from Tesla's shareholders.

Although technically not contingent on voting in favor of Musk's package, shareholders are merely required to demonstrate proof of voting their shares in order to enter the competition, according to the Tesla website. Nonetheless, Musk's enticing offer of a tour personally led by him and chief designer Franz von Holzhausen appears to be an incentive aimed at rallying his dedicated supporters to turn up and approve the multi-billion dollar compensation.

The upcoming shareholder meeting, scheduled for June 13, holds more than just Musk's financial interests. Another crucial item on the agenda is Tesla's plan to shift its state of incorporation from Delaware to Texas. This move comes in response to the previous nullification of Musk's compensation package by a Delaware judge earlier this year, who deemed the close ties between Musk and the board as influential and the proposed sum as "unfathomable."

Despite the board's prior approval in 2018, this year's package faces greater uncertainty, with Tesla experiencing a turbulent financial quarter and struggling to meet delivery and production targets. Moreover, while Musk may have once been considered a beloved figure, some shareholders have grown skeptical of his leadership. However, the fear of losing Musk still hovers over the company, a fact that he appears to have exploited in the past.

Not everyone is in favor of Musk's compensation plan, as proxy-advisory firm Glass Lewis has advised shareholders against it, highlighting concerns over the dilution of existing shares in Tesla. This warning echoes their stance in 2018, as reported by The Wall Street Journal.

Should the compensation package gain approval, it is expected to face legal challenges, underscoring why Tesla's shift from Delaware to Texas holds significant importance to Musk. Delaware is known for its corporation-friendly environment, and moving the state of incorporation could potentially bolster the chances of successfully implementing the compensation plan.

As the shareholder meeting date approaches, all eyes are on Elon Musk and the fate of his unprecedented compensation package. The tantalizing offer of a personal tour of the Gigafactory, combined with the proposed relocation to Texas, showcases his determination to secure shareholder approval and pave the way for a colossal payday that would cement his position as the highest-paid CEO in the country.