Diamond said the new language illustrates the original agreement and gives significant restrictions on Musk`s use of Twitter. It should be noted that the table above is a rough and simplified estimate of what Musk could do as a result of the compensation agreement. As an example of a restriction, the notification describing the agreement indicated that the company regularly compensates other employees with shares or options, meaning that the value of Musk shares will likely be somewhat diluted, with slightly lower stock prices causing additional market capitalization bricks when new shares are created and issued. The SEC argued that Musk`s tweet was contrary to his agreement. Musk said the tweet was “insignificant” and that he respected the comparison. Tesla, Elon Musk and the U.S. Securities and Exchange Commission reached an agreement Friday that will give the CEO the freedom to use Twitter within certain limits, without fear of being violated because of the violation of an earlier court ruling. Nevertheless, the agreement estimates that the entire package could be worth up to $55.8 billion if the 12 tranches go up. That would prevent Musk from being an already wealthy person in the top category of billionaires. Musk vigorously stated that he had not violated the agreement.

If Musk were to exercise his shares today at this price, his bank account would obviously not immediately increase by three-quarters of a billion dollars. The agreement stipulates that Musk must hold his shares at least five years after exercising one of the options contained in the plan. In other words, Musk`s potential new wealth would be in the form of illiquidating shares on Tesla, not cash. Here are these bricks of revenue and revenue according to the agreement. According to the company`s latest annual proxy statement submitted to the SEC, Tesla had officially achieved the first revenue and, unofficially, met the first of the EBITDA targets, meaning that two operational steps have been reached. Musk can tweet as he likes, unless it`s certain events or financial terminals. In these cases, Musk must obtain prior authorization from a securities lawyer, in accordance with the agreement filed in federal court in Manhattan. The deal was valued at more than $2 billion in a company submitted to the Securities and Exchange Commission, but Musk has yet to make any value and is an excellent example of the complexity of CEO pay. Each tranche of options, once deferred, musk entitles you to purchase shares of Tesla shares up to 1,688,670 at a price of $350.02 per share or at the closing price at the time of the agreement.