Tesla has filed documents with the U.S. Securities and Exchange Commission to formalize the record-breaking compensation package promised to Elon Musk in 2018. This refers to 304 million shares, which were valued at $56 billion at the time. Ixbt.com reports on this.
As a result of the company's stock price rising to $376, the current value of this package has exceeded $114 billion. This is expected to conclude several years of litigation.
In 2018, the board of directors set a complex condition for Musk: he would only receive the shares if he achieved 12 targets related to the company's capitalization and business performance. Musk completed all tasks by the end of 2021.
The Delaware Supreme Court ruled that the payment of six years' worth of salary to Musk is fair. According to the terms, Musk must remain with the company until at least 2028 and does not have the right to sell the acquired shares for five years.
Currently, Elon Musk leads the ranking of the world's wealthiest people with a fortune of $839 billion. Shareholders have already approved a new compensation package for him that could reach up to $1 trillion.
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