The popular cryptocurrency exchange Coinbase recently released its S-1 filing to the SEC in preparation for a public offering that's expected to come soon, with the S-1 filing providing a peek into its financials and operational stats with information not publicly known before.
The core information to have been revealed by Coinbase's S-1 filing is that the company is very profitable, posting a net income of $322 million on $1.28 billion in revenue in 2020. The popular crypto exchange swung from a $30 million loss in the previous year 2019 and grew its annual revenue from $533.7 million to $1.28 billion over the year.
Among the noteworthy disclosures to have come from Coinbase's S-1 filing is that the company's founder and CEO Brian Armstrong pulled in a big compensation package of nearly $60 million in 2020, precisely $59.5 million.
- Brian Armstrong's $59.5 million pay package consisted of a base salary of $1 million, stock options awards of $56.7 million, and $1.8 million listed as "other compensation". This "other compensation" consists of $1.78 million in personal security expenses for Armstrong and $17,165 in reimbursed legal fees in 2020.
- Armstrong's pay package is very high and gives him a top spot among the highest-paid executives in the US. For comparison sake, Jamie Dimon who is the CEO of America's largest bank, JPMorgan Chase, earned $31.5 million in 2020 while David Solomon who's the CEO of the banking giant Goldman Sachs earned $17.5 million in 2020. Both CEOs' salaries combined don't match up to Armstrong's 2020 pay.
- Armstrong's security expenses of $1.78 million seem high but were defended by Coinbase as "reasonable business expenses due to a bona fide business-oriented security concern".
- Just like Armstrong, a few other Coinbase executives are disclosed to have drawn high compensation packages in 2020, including Chief Product Officer Surojit Chatterjee who earned $15.9 million and Chief Legal Officer Paul Grewal who earned $18 million.
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