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Coinbase CEO To Make Million Dollars Per Day For Decade After IPO

• https://www.zerohedge.com, by Tyler Durden

With cryptos all the rage today, investors are piling into the digital currency as a means of hedging against inflation sparked by the Federal Reserve's endless money printing (brrr). The bull market in crypto has allowed the biggest and most established cryptocurrency exchange globally, Coinbase, to flourish in valuation as it nears IPO. 

Reaping the rewards of a Coinbase IPO would be the company's CEO Brian Armstrong who would receive a massive windfall of more than $3 billion. Running the numbers, that turns out to be more than $1 million per day for the next decade, according to company filings. Not a bad deal, right?

"The astronomical award is the latest example of so-called founder grants: big blocks of equity handed to founders of companies preparing to go public. Boards of startups typically say such deals are needed to keep the founders around, even though the IPOs often cement billion-dollar fortunes for the recipients through their ownership stakes," according to Bloomberg

The company filed its S-1 last Thursday, which offered the most insight into the firm's financials. The company has 43 million verified users and worth over $100 billion. The filings also said the performance thresholds for Armstrong's handsome award "are extremely rigorous and appropriately align" his incentives with shareholders. The company had a 2020 income of $322 million versus a loss of $30 million a year earlier.

Armstrong, 38, was granted 9.3 million options, or about 3.8% of the company's outstanding stock, valued at an exercise price of around $23.49.