TheStreet reports, “Microsoft CEO Dumps Half of Shares Ahead of Capital Gains Tax Change”.
Microsoft CEO Satya Nadella sold about half of his shares in the company last week, according to a federal securities filing, ahead of a change in the way the shares will be taxed.
The sale yielded more than $285 million for Nadella after selling 838,584 shares over two days, down nearly 1.7 million shares.
“Satya sold approximately 840,000 shares of his holdings of Microsoft stock for personal financial planning and diversification reasons,” a Microsoft spokesman told the Wall Street Journal.
Washington state solons handed down from their Olympian temple the state’s first ever capital gains tax, assessed only on those with gains of more than US$ 250,000 in a year, at a rate of 7%. I don’t know what the basis is for the stock Nadella sold, but if it dates from his joining the company in 1992, it may be effectively zero compared to today’s price. That would mean by selling before the Washington tax takes effect, he will save around US$ 20 million in state taxes.
The Journal reported that the sale could be related to Washington state instituting a 7% tax for long-term capital gains beginning at the start of next year for anything exceeding $250,000 a year.