Microsoft (MSFT) - Get Microsoft Corporation Report 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.
“He is committed to the continued success of the company and his holdings significantly exceed the holding requirements set by the Microsoft board of directors.”
Satya has a salary of $40 million annually with websites pegging his net worth between $350 million and $880 million, according to various websites.
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.
Satya isn't the first high profile executive to turn the potential revenue in his equity position into realized gains.
Musk sold 587,638 shares held by his trust on Nov. 11 in multiple transactions at prices ranging from $1,056.03 to $1,087.88, according to one regulatory filing with the Securities and Exchange Commission.
A second filing showed that Musk sold an additional 52,099 shares held by his trust at prices ranging from 1,088.01 to $1,104.15.
Musk had previously said that he would have to exercise a large number of stock options in the next three months, which would create a big tax bill. Selling some of his stock could free up funds to pay the taxes.
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