Alex Karp, CEO of Palantir arrives forward of a “Tech For Good” meetup at Resort Marigny in Paris on Might 15, 2019, held to debate good conduct for know-how giants.
Bertrand Guay | AFP | Getty Photographs
Palantir CEO Alex Karp earned compensation price about $1.1 billion in 2020, primarily via 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 price $797.9 million, with one other $296.4 million was for inventory awards. The outsized bundle is the results of an fairness incentive plan agreed upon final 12 months, giving Karp 141 million choices that start vesting in August 2021. Every quarter, 2.5 p.c of the fairness will vest.
Karp’s 2020 pay was up from $12 million a 12 months earlier. Along with inventory 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 providers to the intelligence neighborhood. The corporate expanded whereas providing little visibility into its enterprise, till going public through direct itemizing in September at a valuation of over $15 billion. After debuting at $9.50 a share, the inventory soared previous $35 in January, earlier than dropping over the subsequent few months. It closed on Thursday at $23.37.
Whereas Palantir was for many of its life based mostly Palo Alto, California, Karp made a degree within the prospectus of ripping Silicon Valley for producing companies that promote our “ideas and inclinations, behaviors and shopping habits” Across the identical time, the corporate introduced plans to move its headquarters from Palo Alto to Colorado, a state that considerably lower income taxes.
On the time of the New York Inventory Alternate itemizing, Karp owned about $1 billion price of Palantir inventory. He is since offered about $350 million price at share costs starting from $9.10 to $31.59, in keeping with SEC filings.
Stephen Cohen, Palantir’s president, noticed the worth of his compensation soar from $16 million in 2019 to $192 million final 12 months as a result of fairness awards granted in August. Chief Working Officer Shyam Sankar acquired complete compensation price $102 million in 2020, up from $26 million the prior 12 months.
For all three high executives, the earn out will come over time. Choices 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 Monetary Accounting Requirements Board.
“These quantities don’t essentially correspond to the precise worth acknowledged or which may be acknowledged by the chief officers,” the submitting mentioned.
A Palantir consultant declined to remark.