The stock of the climb made Alex Karp to Palantir 6.8 billion dollars last year, making it one of the best paid CEOs

• The co -founder of Palantir and CEO Alex Karp has not received a stock from the company since it became public, But his existing participations have increased in recent years, which makes him one of the most paid CEOs in the country, according to a new calculation nicknamed “the really paid remuneration”.

Investors awaiting profits from the Defense Palantir entrepreneur have already had a record year, the technological company seeing its actions. But few did better than the co -founder and CEO Alex Karp, who saw a leap of several billion dollars in its net value last year on the strength of its palantant actions, which increased by 340% in 2024.

Karp, which has been with the company since it co -founded it, has become 6.8 billion dollars richer on paper, according to Palabuting proxy.

This dollar figure appears in a chronicle entitled “the remuneration really paid to the CEO”, which, says Palant, in a footnote, “does not represent the remuneration actually paid, won or received by it during the applicable year.”

Instead, it represents the massive increase in the value of action subsidies and share purchase options that Karp currently holds.

The remuneration under the calculation “really paid” overshadows the $ 4.6 million Karp last year as part of a more standard accounting of the remuneration of CEOs.

Using these rules, the $ 4.6 million came from 1.1 million dollars in cash, the rest representing the value of safety and travel services.

Since the column “Really paid compensation” began to appear in the deposits of the dry two years ago, he created a new class of Ultra-Hilliards, the New York Times note last yearWhen Karp finished second on the list of CEOs best paid by the more recent metric.

“Yes, this is real money, but it is not a cash liquid immediately,” said Rohan Williamson, professor of finance at the McDonough School of Business of the University of Georgetown.

“It was not as if he had returned home and they said, here is the check for $ 6.8 billion. But that's the value,” he said.

A 10 -year expectation

As it is quite typical for a technology founder, Karp receives most of its compensation in stock. Palantir became a public in 2020 with Karp holding company 141 million share purchase options and 39,000 limited action units, estimated at $ 1.1 billion at the time. In particular, Karp has not received any new grant or option to purchase shares since.

“Indeed, the enormous remuneration that this person received – and it is very important – is in 2020,” said Egor Matveyev, lecturer in MIT Sloan School of Management. “They were designed as long -term scholarships with a very long -term acquisition period … Everything he realizes comes back to this original subsidy.”

In an unusual turn, Karp had a very long acquisition period – it would be 10 years before taking full advantage of his actions. A more typical calendar for action prices based on yield is three years, according to Eric Hoffmann, vice-president and data manager at Farient Advisors.

“They mainly try to keep him there in place until he approaches retirement age,” said Hoffmann Fortune.

Pay now, pay later

As he was awarded, Karp's price was quite generous. “I would say that it is on the top side, with regard to a company of this size,” said Matveyev, noting that the median CEO wins $ 20 million per year; $ 1.1 billion karp over a decade adapts to more than $ 100 million per year.

But since then, the course of the Palantant action has increased by a factor of 12 – just like the value of Karp assets. This shows a potential drawback of “moonshot” compensation packages.

“If the company is doing very well, the value achieved can be enormous,” said Matveyev. “We just give a lot of value.”

A spokesperson for Palantir did not immediately respond to a request for comments.

Several professionals of the complex compared the compensation of Karp ball to the Elon Musk agreement with Tesla, who at one point was evaluated at $ 56 billion and articulated her meeting with certain marks. (So ​​far, the remuneration agreement has been rejected twice by the Court of Chancellery of Delaware.)

“In wider business space [this pay structure] is unusual; In the technological space, this is not the case, “said Williamson de Georgetown.” The view is: 'I took a lot of risks, I bought the actions early, I did all the work, it is built on my brain, it made a profit very quickly, I deserve it. And it is questionable, but it is the structure. “

This story was initially presented on Fortune.com