Neal Patterson, co-founder and CEO of Cerner, opted to collect $26.9 million worth of the company's stock that were issued to him 21 years ago, reports Kansas City Star.
In June 1995, Cerner issued Mr. Patterson the stock options. When he decided to collect the shares, the stock options were worth $50.27 million, but he forfeited some of those shares to cover costs of exercising his options and to cover withholding taxes, according to the report.
Accounting for those he forfeited, Mr. Patterson collected 400,000 shares and sold them for $67 each, according to the report.
Paul Dorf, chairman and managing director of compensation and human resource consulting service provider Compensation Resources, told Kansas City Star Mr. Patterson's 25-year stock option is unusual, as companies generally give executives stock options that last 10 years.
A spokesperson for Cerner told Kansas City Star the company typically now awards 10-year stock options, and the ones Mr. Patterson sold were a small piece of his ownership in the company.
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