Increasing actions made Alex Karp de Palantir $ 6.8 billion last year, making it one of the best paid delegates.

• The co -founder of Palantir and CEO Alex Karp have not received actions from the company since it was made public, But its existing stakes have increased in recent years, making it one of the best paid officers in the country, according to a new calculation called “really paid compensation”.

Investors awaiting the revenue of the defense contractor on Monday they have had a year of flag, and the technology company saw that their actions increase. But few came better than co -founder and CEO Alex Karp, who saw a millions of dollars in their net value last year at the The strength of his Palantir shareswhich increased by 340% by 2024.

Karp, who has been with the company since co -founding it, became a richest $ 6.8 billion on paper, according to Palantir Proxy Archive.

This dollar figure appears in a column entitled “Really paid compensation to the CEO”, which, Palantir, says, in a footnote, “does not represent a truly paid compensation, obtained or received by him during the applicable year.”

Instead, it represents the massive increase in the value of the grants and actions options currently Karp.

The compensation under the “really paid” calculation virtue of the $ 4.6 million Karp received last year under a more standard accounting for CEO remuneration.

Using these rules, $ 4.6 million derived from $ 1.1 million in cash with the rest that represented the value of safety and travel benefits.

Since the “Really Payed Compensation” column began to appear on the SEC’s tiles two years ago, it has created a new class of billions of million, the New York Times noticed Last yearWhen Karp was second on the best paid list of CEOs for the new metric.

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

“It’s not like going home and they said, here’s the check for $ 6.8 billion. But that’s the value,” he said.

A ten -year wait

As is typical of a technology founder, Karp receives most of its compensation in stock. Palantir became public in 2020 with Karp aging 141 million actions options and 39,000 units of restricted shares, which were evaluated at $ 1.1 billion at that time. Above all, Karp has not received subsidies or new actions options.

“Indeed, the huge package of payments that this person received, and is very large, is in 2020,” said Egor Matveyev, a principal professor in Finance at MIT Sloan School of Management. “They were designed as long -term prizes with a long -term contracting period … everything that is realized goes back to this original subsidy.”

In an unusual turn, Karp had a very long journey period: it would pass ten years before it enjoyed the full property of its actions. According to Eric Hoffmann, Vice President and Data Director of Farious Advisors.

“They basically tried to keep it there until it approaches retirement age,” Hoffmann said Fortune.

Pay now, pay later

At the time it was given, the Karp Award was quite generous. “I would say that this is the higher purpose, when it is a company of this size,” said Matveyev, emphasizing that the CEO of the median $ 20 million a year; The $ 1.1 billion of Karp for a decade exceeds more than $ 100 million a year.

But since then, the price of Palantir’s shares has increased a factor of 12, and so has the value of Karp’s holdings. This shows a potential disadvantage of “moonshot” compensation packages ..

“If the company goes well, the value made can be huge,” said Matveyev. “We just gave a lot of value.”

A spokesman for Palantir did not respond immediately to a comment request.

Several account professionals compared Karp’s Ballooning compensation with Elon Musk’s Treat with Teslawhich at any given time was evaluated on $ 56 billion and was based on the meeting of certain reference points. (So ​​far the payment agreement has been rejected Twice by the Chancery Court of Delaware.)

“In the space of the wider company (this payout structure) is unusual; in the technological space, it is not,” said Williamson of Georgetown. “The point of view is:” I was very risky, I bought the shares early, I did all the work, it is based on my brain, it was very quickly profit, I deserve it. And this is debatable, but this is the structure. “”

This story originally presented to Fortune.com

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