Brian Armstrong Could be set to Get More Than 1 Million Dollar Daily for the Next Decade After Coinbase IPO

By: Mark Jessy

Brian Armstrong Could be set to Get More Than 1 Million Dollar Daily for the Next Decade After Coinbase IPO

March 9, 2021 6:20 AM

CEO of cryptocurrency exchange Coinbase could be set for a major windfall of $3 billion after the firm goes public.


Armstrong whose stake in the company is currently worth $15 billion according to Bloomberg billionaire index, has received a huge grant of options that is tied to the firms share price.


According to a Bloomberg report, Brian Armstrong CEO of Coinbase Global Inc. secured a compensation package last year, is set to become the most lavish pay deal in corporate America thanks to cryptocurrency boom.


According to recent news reports on details from the regulatory filings which shows that the exchange CEO could be set for a windfall of about $3 billion which is equivalent to him earning over $1 million daily for the next 10 years.


The award is an example of founder grants with big percentage in equity being dished out to the founders of companies that are preparing for an IPO. These sort of deals are important to keep founders around according to various startup boards. 


Other examples in recent times comprise of Alexander Karp, the chief executive officer of Palantir Technologies Inc., who is set to receive equity awards worth more than $1 billion over the next decade. Among others CEO of Snowflakes Inc. Frank Slootman will also get stock options currently valued at about $80 million each month for four years.


Coinbase has been silent and decline to comment on the CEO pay package saying the performance thresholds for his award are extremely rigorous and appropriately align. The company is currently pushing for a direct listing this year after it made $322 million as profit in 2020.


Armstrong, founded Coinbase in 2012, and with the massive rise of in price of digital assets like bitcoin exchanges such as Coinbase has seen increased traffic with every Bitcoin all-time high. The company now has over 43 million users giving them access to trade over 40 digital assets.


In August Armstrong received 9.3 million options at an exercise price of $23.49, which is about 3.8% of the firms outstanding stock. At the time of reporting Armstrong options are valid for a duration of 10 years and the firms didn't specify if it would grant the CEO addition awards.


According to Axios an online news site, a buyer bought 127,000 shares of Coinbase on Feb. 19 during a private transaction for $373 each, which is within striking distance of his top target at $400. At that price, the options are worth more than $3 billion on paper, which shows Armstrong is not far of.