In November, Microsoft CEO Satya Nadella sold half of his stake in the company.
According to a filing with the US Securities and Exchange Commission, Nadella sold 840,000 shares for over $285 million. According to a Geek Wire report, Microsoft said that he sold his stake for personal financial planning.
The company said that his holdings exceed the holding requirements set by the Microsoft Board of Directors.
The Wall Street Journal reported that analysts said the move could be related to the implementation of capital gains tax law in Washington state.
The controversial law, which goes into effect on January 1, 2022, affects business ownership sales and attracts 7 percent tax on stock sales over $250,000.
The capital gains tax in Washington state is expected to raise a lot of money.
The Microsoft stock did not react to the stake sale. The company's shares fell 1.7 percent on November 30.
Since becoming CEO of Microsoft in 2015, Nadella has presided over a period of growth at the company. When he took the reins, Microsoft shares were trading around $36.35.
The demand for cloud computing and Windows-powered machines drove Microsoft's quarterly earnings past expectations.
The company said it made a profit of $20.5 billion in the recently ended quarter and revenue increased by 22 percent from the same quarter last year.
