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

Microsoft CEO Satya Nadella bought half of his stake within the firm in a sequence of transactions final week, divesting about 840,000 shares for a sum of greater than $285 million, according to a regulatory filing.

Nadella bought the shares “for private monetary planning and diversification causes,” the Redmond-based firm mentioned in an announcement Monday afternoon. “He’s dedicated to the continued success of the corporate and his holdings considerably exceed the holding necessities set by the Microsoft Board of Administrators.”

It comes prematurely of Washington state implementing a controversial new capital positive factors tax. Passed by lawmakers in April, it primarily targets inventory and enterprise possession gross sales with a 7% tax on long-term capital positive factors of greater than $250,000.

The primary such tax in state historical past, it’s set to take impact on Jan. 1, 2022.

Microsoft’s assertion on Nadella’s inventory sale didn’t tackle whether or not the approaching capital positive factors tax factored into Nadella’s private monetary planning. A Wall Road Journal report cited analysts who pointed to a attainable connection.

Washington state’s new capital positive factors tax is estimated to lift about $550 million yearly beginning in fiscal yr 2023. The vast majority of the funds are slated to go towards early schooling and childcare.

The corporate’s shares closed up greater than 2% on Monday at $336.63. Microsoft shares have been buying and selling round $36.35 when Nadella turned CEO in February 2014, a couple of tenth of their present worth.

Nadella bought shares on Nov. 22 and 23 at common costs starting from $334 to greater than $349, in keeping with Microsoft’s Securities and Change Fee submitting.

Microsoft holds its annual shareholders meeting Tuesday morning.

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