Microsoft CEO Sells $300 Million of His Shares | Satya Nadella Sells Half His Stake

Microsoft CEO Satya Nadella is selling half of his interest in the company, which is worth over $300 million. According to an SEC filing, Nadella sold 840,000 shares for more than $285 million.

Satya Nadella, CEO of Microsoft

According to a Yahoo Finance story, Nadella, Microsoft’s CEO, sold his stock in the business in a series of transactions that resulted in the sale of around 840,000 shares for more than $285 million.

Microsoft disclosed that Nadella sold shares for personal financial planning and diversification purposes. With that, the publication stated that he is devoted to the company’s continuing growth and that his shares far above the required ownership set by the Microsoft Board of Directors.

Satya Nadella sells half his Microsoft stock, weeks before state implements  capital gains tax

Capital Gains Tax is being implemented in Washington State for the first time

Nadella’s decision to sell his shares comes ahead of the new Washington state adoption of a brand new capital gains tax, which lawmakers passed in April. To elaborate, the tax reform primarily targets stock and business ownership sales, imposing a new 7% tax on long-term capital gains of more than $250,000.

The new tax is set to go into effect on January 1, 2022. In this regard, Microsoft’s announcement on Nadella’s stock sale did not clearly address whether the upcoming capital gains tax was incorporated into Nadella’s personal financial plans.

Annual Capital Gains Tax of $550 Million

According to a Wall Street Journal report, certain experts believe the new regulation is related to Nadell’s decision to sell half of his interest in Microsoft. In terms of the new legislation, Washington’s fresh new state capital gains tax is expected to generate roughly $550 million per year beginning in 2023. As a result, a significant portion of the funding will now be directed toward childcare and early education.

On Monday, the company’s stock rose by more than 2% to $336.63 per share. In regard to this, Microsoft’s shares were trading at around $36.35 when Nadella was appointed CEO in February 2014, which is now around a tenth of the company’s current worth.

Nadella shares were sold on November 22 and 23

According to Microsoft’s Securities and Exchange Commission filing, Nadella sold his shares on November 22 and 23 for an average price ranging from $334 to over $349. Microsoft’s annual shareholders meeting will be held on Tuesday morning to fill in the gaps.

According to The Hill, Nadella was named CEO for the first time in February of 2014, after holding leadership roles in both consumer and enterprise sectors across the organization. The Journal reported that since taking over as CEO of Microsoft, the business has traded at a staggering $2.53 trillion market value, which is up almost 780 percent since his hiring.