Tim Armstrong could get a $59 million stock award from AOL sale

Tim Armstrong will walk away with $59 million after selling AOL to Verizon, an SEC filing shows.

Earlier this month, Verizon announced plans to purchase AOL for $4.4 billion. Armstrong will stay with the company to run the AOL business, which will operate as a division of Verizon.

According to the filing, Armstrong will receive a "Founders' Incentive Award" of restricted stock units with a value equivalent to 1.5% of AOL's market value when the merger is consummated. At today's price, that's worth $59 million.

Half of the stock will vest on the 3-year anniversary of the deal's consummation, and the remaining 50 percent will vest on the 4-year anniversary, according to the filing.

Armstrong will also be eligible to receive annual equity awards with a target value of $3 million beginning in 2016.

A February regulatory filing says Armstrong holds 1.48 million shares of AOL, or 1.9% of the company.

AOL's brands include The Huffington Post, TechCrunch, and Engadget. These companies will not spin off, Armstrong said earlier this month.

Verizon's all-cash acquisition is expected to close sometime this summer.