Musk’s $56 Billion Pay Gambit Risks Endless Corporate Do-Overs

Elon Musk‘s attempt to revive his record $56 billion compensation at Tesla Inc. breaks from a pillar of corporate law by raising the specter of deals that never really close and court fights that never truly end.

The billionaire, wielding an unprecedented investor vote, is seeking a redo of the landmark ruling that knocked him off his perch as the world’s wealthiest person. “Tesla’s stockholders have spoken,” Musk and other board members said in a court filing. They called the vote to reinstate Musk’s pay package an example of corporate democracy in action.

The judge who issued the decision ...