Palantir CEO Alex Karp arrives ahead of a “Tech For Good” meeting at Hotel Marigny in Paris on May 15, 2019 to discuss good behavior for technology giants.
Bertrand Guay | AFP | Getty images
Palantir CEO Alex Karp earned approximately $ 1.1 billion in compensation in 2020, mainly through stock awards shortly before his software company went public.
In a proxy filing on Thursday, Palantir said most of Karp’s salary was tied to options worth $ 797.9 million, with an additional $ 296.4 million for shares. The outsized package is the result of an equity incentive plan agreed last year, giving Karp 141 million options that will vest in August 2021. Each quarter, 2.5 percent of the equity becomes unconditional.
Karp’s salary in 2020 was up from $ 12 million a year earlier. In addition to stock rewards, he earned a $ 1.1 million salary and other benefits, including tax advice, personal safety, and the use of chartered aircraft, totaling $ 3.1 million.
Karp, 53, co-founded Palantir in 2003 with Peter Thiel and others to provide data analysis tools and services to the intelligence community. The company expanded while offering little visibility into its business until it went public in September via a direct listing at a valuation of more than $ 15 billion. After debuting at $ 9.50 a share, the stock shot above $ 35 in January before declining in the coming months. It closed at $ 23.37 on Thursday.
While Palantir was based in Palo Alto, California for most of his life, Karp made a point in the prospectus of tearing up Silicon Valley for producing companies that sell our “thoughts and tendencies, behaviors and browsing habits.” Around the same time, the company announced plans. to move its corporate headquarters from Palo Alto to Colorado, a state that is significantly cutting income taxes.
At the time of listing on the New York Stock Exchange, Karp owned approximately $ 1 billion in Palantir stock. He has since sold about $ 350 million at stock prices ranging from $ 9.10 to $ 31.59, according to SEC documents.
Stephen Cohen, Palantir’s president, saw the value of his compensation increase from $ 16 million in 2019 to $ 192 million last year thanks to the stock award in August. Chief Operating Officer Shyam Sankar received total compensation of $ 102 million in 2020, up from $ 26 million the previous year.
For all three top managers, the profit will come over time. Cohen and Sankar options will vest at 5% per quarter from August. Palantir said the values attributed to the 2020 awards are based on the Financial Accounting Standards Board rules.
“These amounts do not necessarily correspond to the actual value recognized or recognized by the executive officers,” the application said.
A representative for Palantir declined to comment.
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