It seems as though Tesla’s Elon Musk is not the only high profile CEO disposing of shares in the organization they run. Microsoft chairman and CEO Satya Nadella have shed the greater part of his stake in the software giant in the previous week.
Nadella sold almost 840,000 shares of Microsoft just before Thanksgiving, netting him about $285 million in continues, as per a filing with the Securities and Exchange Commission. He actually possesses more than 830,000 shares of Microsoft (MSFT), which are presently worth about $280 million.
It’s a good idea that Nadella would take some money off the table. All things considered, Microsoft stock has been a stellar performer this year, taking off over half. Home Depot (HD) is the only Dow stock that has improved.
Microsoft has delighted in strong sales and earnings thanks to the cloud leadership position it set up since Nadella took over as CEO in 2014. The organization is presently worth more than $2.5 trillion. Just Microsoft’s rival Apple (AAPL) has a higher market value.
Also, Nadella has been repaid abundantly for his successful residency at Microsoft.
As per Microsoft’s latest annual shareholder proxy statement recorded with the SEC, Nadella procured a salary of $2.5 million this fiscal year and has a total annual compensation package, which incorporates stock awards and cash incentives, of almost $50 million. Nadella acquired more than $40 million during the beyond two fiscal years too.
Under Nadella, Microsoft has built up its Azure cloud unit. The organization is additionally minting cash from its core Office 365 suite of Word, Excel, PowerPoint, and other business software as well as from its LinkedIn corporate social networking unit and Xbox gaming division.
A Microsoft representative said a statement that Nadella sold the stock “for personal financial planning and diversification reasons.”
“He is committed to the continued success of the company and his holdings significantly exceed the holding requirements set by the Microsoft Board of Directors,” the representative added.
The stock sale additionally comes shortly before Microsoft’s home state of Washington is set to carry out a 7% long-term capital gains tax.