A footnote within the Palantir compensation disclosure made me snigger, 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 really paid’ or ‘CAP’ doesn’t replicate the quantity of compensation really paid, earned or acquired by him throughout the relevant yr.”

In actuality, Palantir stated, the numbers reported for Mr. Karp and a handful of different Palantir executives “are pushed primarily by adjustments in our inventory value,” which rose greater than one hundred pc in 2023, producing large positive aspects for shareholders and so, “following S.E.C. disclosure guidelines, the fiscal yr 2023 CAP disclosed beneath 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 goal, I feel. Huge adjustments on this measure are an indication {that a} C.E.O. acquired huge compensation packages involving firm inventory previously. For instance, The Occasions reported that for 2020, Mr. Karp acquired $1.1 billion in Conventional Pay, probably the most for any chief govt that yr.

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