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A footnote within the Palantir compensation disclosure made me snicker, which was noteworthy as a result of these compensation disclosures often make me frown.

Referring to Mr. Karp’s apparently gargantuan payday, it stated: “The time period ‘compensation truly paid’ or ‘CAP’ doesn’t replicate the quantity of compensation truly paid, earned or acquired by him in the course of the relevant yr.”

In actuality, Palantir stated, the numbers reported for Mr. Karp and a handful of different Palantir executives “are pushed primarily by modifications in our inventory value,” which rose greater than one hundred pc in 2023, producing large positive factors for shareholders and so, “following S.E.C. disclosure guidelines, the fiscal yr 2023 CAP disclosed under has elevated.” However the earlier yr, 2022, was a depressing one for the entire inventory market. Palantir shares fell sharply, as did the worth of Mr. Karp’s compensation, utilizing the New Accounting strategy. For 2022, the corporate stated, he misplaced greater than $1.7 billion.

These staggering, fluctuating sums could be perplexing in isolation. Nonetheless, they serve a function, I feel. Massive modifications on this measure are an indication {that a} C.E.O. acquired monumental compensation packages involving firm inventory prior to now. For instance, The Instances reported that for 2020, Mr. Karp acquired $1.1 billion in Conventional Pay, essentially the most for any chief government that yr.

Equally, Broadcom reported that in 2023, Mr. Tan’s compensation with the New Accounting was $767,654,487, nearly 5 occasions his already wealthy compensation on the Conventional Pay checklist. That occurred as a result of the share value rose and Mr. Tan, the chief government of his firm since 2006, had amassed a substantial amount of inventory, choices and the like.

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