Elon Musk went to war with Delaware over its corporate laws after a judge shot down his massive Tesla pay package, moving his companies out west. Now the First State is responding with a legislative overhaul to keep other moguls from following him.

A law firm representing Elon Musk and Tesla helped draft a bill some experts say could, if passed, possibly restore Musk's lost multibillion-dollar compensation package.

After a bruising battle with Elon Musk, the state where most of the S&P 500 is incorporated, is making itself more pliable for boards and big shareholders.

The proposed bill, which was posted on the Delaware General Assembly’s website on Monday, would make it more difficult for shareholders to show that a corporate director is “conflicted” in a deal, a legal status which makes it easier to prove the transaction was unfair to ordinary shareholders.