CEO Brian Armstrong received $6.3 million in security benefits

CEO Brian Armstrong received $6.3 million in security benefits

According to a recent SEC disclosure, Coinbase CEO Brian Armstrong received $6.3 million in security benefits in the previous year, more than three times the amount the company had spent on his security the year before. The company’s executive compensation summary, published last month, did not provide any explanation for this increase in expenditure on security services.

Given the high-risk nature of the crypto industry, it is not surprising that Armstrong requires significant security measures. The sector is notorious for attracting hackers, criminals, and thieves, and Armstrong’s substantial wealth is well-known. He reportedly made $292 million from stock sales in the weeks following Coinbase’s public debut in 2021.

According to the SEC filing, Armstrong’s total compensation for 2022 was $7.5 million, with a flat salary of $1 million and the rest being spent on security and legal costs. He received the same base salary in both 2021 and 2020.

While most of Armstrong’s wealth comes from his holdings and sales of Coinbase stock, he also received $56.7 million in option awards (valued in 2020) and currently holds 39 million shares in the company, which would be worth $2.4 billion at today’s market price. However, Armstrong would earn less than this amount after paying the cost of the options, which are priced at either $18.71 or $23.46 on shares that currently trade above $60.

Despite his immense wealth, Armstrong’s security expenses remain notably high. For comparison, Pfizer CEO Albert Bourla received $800,687 in security benefits last year, and Goldman Sachs CEO David Solomon received $305,077. While Armstrong’s security bill is not as high as that of Meta CEO Mark Zuckerberg, who receives $14 million a year for security, it is still a considerable expense. However, it is important to note that Zuckerberg’s security costs include the protection of his family, as well as his personal and professional activities.

It is difficult to assess how Coinbase’s executive compensation compares to peers at other exchanges like the privately owned Binance, because only Coinbase has gone public in the U.S., where the disclosure regime requires a high level of transparency. A representative for Coinbase declined to elaborate on the compensation disclosure.

All of Armstrong’s senior colleagues received more annual compensation in 2022 than he did, according to the disclosure:

Coinbase executives and their total compensation in 2022 vs 2021:

  • CEO Brian Armstrong: $7,465,350, up from $3,267,027
  • COO Emilie Choi: $23,499,963, up from $1,220,176
  • CFO Alesia Haas: $11,967,321, down from $16,217,843
  • CPO Surojit Chatterjee: $20,726,528, up from $925,789
  • CLO Paul Grewal: $7,473,148, up from $711,900

The vast majority of their compensation came in the form of stock and option awards. All five executives take $1 million or less in cash salary.

Here’s the detail from the compensation table:

CEO Brian Armstrong received $6.3 million in security benefits

Coinbase had a difficult year in 2022, experiencing a decline in revenue to $3.2 billion, a 59% decrease from the previous year. The company also reported a loss of $2.6 billion, compared to a profit of $3.2 billion in the prior year. The stock price also plummeted by 86%, dropping from over $252 per share to less than $36 over the course of the year.

Recently, Coinbase faced controversy over compensation practices. The company was sued by an investor who alleged that top executives timed the release of negative news about the business after selling stock following the company’s public listing. Coinbase dismissed the lawsuit as a meritless claim, stating that they are sometimes targeted with frivolous litigation as the most popular and only publicly traded crypto exchange in the United States.

Also Check: Bitcoin two-month low as pepe slides 70% from peak

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Sachin Chouhan is an avid entertainment enthusiast and dedicated follower of celebrity and entertainment news. He has always had a passion for the latest happenings in the world of entertainment and has made it his mission to stay up-to-date on all the latest trends, news, and gossip. With years of experience following the entertainment industry, Sachin has developed a keen eye for the latest celebrity fashion trends, music releases, movie reviews, and red-carpet events. His in-depth knowledge and expertise have made him a trusted source for entertainment news and celebrity updates. Contact us: admin@bollywoodfever.co.in

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