Alex Karp, CEO of Palantir arrives forward of a “Tech For Good” meetup at Hotel Marigny in Paris on May 15, 2019, held to debate good conduct for know-how giants.
Bertrand Guay | AFP | Getty Images
Palantir CEO Alex Karp earned compensation worth about $1.1 billion in 2020, primarily by way of fairness awards granted shortly earlier than his software program firm went public.
In a proxy filing on Thursday, Palantir mentioned the majority of Karp’s pay was tied to choices worth $797.9 million, with one other $296.4 million for stock awards. The outsized bundle is the results of an fairness incentive plan agreed upon last year, giving Karp 141 million choices that start vesting in August 2021. Each quarter, 2.5 % of the fairness will vest.
Karp’s 2020 pay was up from $12 million a year earlier. In addition to stock awards, he earned a wage of $1.1 million, and different compensation, together with tax recommendation, private safety and use of chartered plane, totaling $3.1 million.
Karp, 53, co-founded Palantir in 2003 together with Peter Thiel and others to offer information analytics instruments and companies to the intelligence group. The firm expanded whereas providing little visibility into its enterprise, till going public by way of direct itemizing in September at a valuation of over $15 billion. After debuting at $9.50 a share, the stock soared previous $35 in January, earlier than dropping over the following few months. It closed on Thursday at $23.37.
While Palantir was for many of its life based mostly in Palo Alto, California, Karp made some extent within the prospectus of ripping Silicon Valley for producing companies that promote our “thoughts and inclinations, behaviors and browsing habits.” Around the identical time, the corporate introduced plans to move its headquarters from Palo Alto to Colorado, a state that has considerably lower income taxes.
At the time of the New York Stock Exchange itemizing, Karp owned about $1 billion worth of Palantir stock. He’s since bought about $350 million worth at share costs starting from $9.10 to $31.59, in line with SEC filings.
Stephen Cohen, Palantir’s president, noticed the worth of his compensation soar from $16 million in 2019 to $192 million last year attributable to fairness awards granted in August. Chief Operating Officer Shyam Sankar acquired whole compensation worth $102 million in 2020, up from $26 million the prior year.
For all three prime executives, the earn out will come over time. Options for Cohen and Sankar vest at 5% 1 / 4 beginning in August. Palantir mentioned that the values ascribed to the 2020 awards are based mostly on guidelines of the Financial Accounting Standards Board.
“These amounts do not necessarily correspond to the actual value recognized or that may be recognized by the executive officers,” the submitting mentioned.
A Palantir consultant declined to remark.
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