Digital cryptocurrency platform Coinbase is preparing for a public offering very soon, and if everything goes according to plan, CEO and founder Brian Armstrong is set for mass broadcasting. According to Bloomberg estimates, Armstrong’s coinbase stock options will see an estimated $ 3 billion in windfall.
Their total stake in Coinbase is estimated to be around $ 15 billion, and their compensation over the past year certainly reflects Coinbase’s growing fortunes (and cryptocurrency in general). In addition to his $ 1 million base salary, he took home $ 56 million in stock option awards. But that is nothing compared to the financial incentive he is set to receive if he directs Coinbase to a share price of at least $ 200 per share, which is his own “reasonable” price of $ 23.49 per share. Value “is slightly higher.
Like the plan paid for by Elon Musk as Tesla’s CEO, Armstrong’s compensation will be linked to the stock market performance of Coinbase and other benchmarks, and as a result he has the ability to make large sums of money. In a filing by Coinbase relating to its IPO, Armstrong’s promotion was described as:
“We believe that the performance conditions associated with the 2020 CEO Performance Award are extremely stringent and appropriately align Mr. Armstrong’s incentives with the interests of our stockholders.”
Meanwhile, Coinbase stock is selling more than $ 300 a share on the Nasdaq Private Markets prior to its direct listing, which is a good sign of the company’s fortunes on the open stock market. On the other hand, the company recently paid $ 6.5 million to the Commodity Futures Trading Commission, alleging that it had engaged in misleading reporting about its previous self-trading assets. But even when no wrongdoing is accepted in the settlement, it is still more good news for the company than bad news, as a Coinbase press release states:
“We have been consistently involved with the CFTC throughout their investigation, and we believe that our dialogue was constructive and contributed to an outcome that is satisfactory to both parties.”
A date for the Coinbase IPO has not been set as of this writing, but it is expected to happen soon, and for once it seems to founder and CEO Brian Armstrong that he will likely find himself a wealthy person too. Is already there.