The Securities and Exchange Commission (SEC) recently revealed that Coinbase CEO, Brian Armstrong, was granted security benefits of $6.3 million in 2022, more than triple the amount in the previous year. The disclosure has coincided with a regulatory tussle for Coinbase in the United States.
Compensation and Benefits
Armstrong’s total compensation for the year was $7.5 million, out of which $1 million was his base salary. The remaining amount was spent on security and legal expenses, which was the same as his compensation package for the previous two years. Armstrong’s net worth is also significantly boosted by his holdings and sales of Coinbase’s stock. He received nearly $57 million in option awards and still holds 39 million shares, which are currently worth $2.4 billion if sold.
Additionally, Coinbase’s top executives, including COO Emilie Choi, CFO Alesia Haas, CPO Surojit Chatterjee, and CLO Paul Grewal, have also seen a significant appreciation in their total compensation for the year. All five executives receive almost $1 million in cash salary.
Coinbase’s Financial Performance and Regulatory Pressure
Coinbase reported losses for the fifth consecutive quarter, posting $79 million in losses, while its total revenue plunged to $772.5 million, a decline of 37% from the $1.1 billion in revenue for Q1 2022. The company’s stock has also taken a hit due to regulatory pressure in the United States.
Despite regulatory challenges, Coinbase’s leadership team continues to receive substantial compensation packages, with Armstrong’s security benefits alone amounting to $6.3 million. The company’s executives also hold significant stock options, which further add to their net worth. Coinbase’s financial performance remains under scrutiny, with losses mounting despite the company’s attempts to expand its offerings.