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Snowflake CEO collects a $95 million payout every month
January 9, 2021

Snowflake Inc CEO collects a $95 million payout every month

Snowflake Inc is doing well by any stretch of the imagination. On Wednesday, the cloud-computing company reported that third-quarter revenue more than doubled from a year earlier, and its stock has surged 183% to $339.89 since its Sept. 15 initial public offering. That has helped make Chief Executive Officer Frank Slootman one of the best-paid... Read More

Snowflake Inc is doing well by any stretch of the imagination. On Wednesday, the cloud-computing company reported that third-quarter revenue more than doubled from a year earlier, and its stock has surged 183% to $339.89 since its Sept. 15 initial public offering.

That has helped make Chief Executive Officer Frank Slootman one of the best-paid technology executives. A compensation package he received upon joining Snowflake in April 2019 awards him a batch of options every month — for four years — that are now worth almost $95 million each, or about $1.1 billion annually.

Slootman’s pay includes more than 13.7 million options with a strike price of $8.88. The vast majority can already be exercised but the underlying shares vest monthly over four years, beginning with the month he started.

He also gets a $375,000 annual base salary, which can go higher depending on the firm’s performance.

Once the full options package is paid out in early 2023, it would be worth about $4.5 billion at the current stock price.

A spokeswoman for San Mateo, California-based Snowflake declined to comment on Slootman’s pay package or net worth.

He hasn’t exercised any of his options and his shares are subject to a lockup period that ends in March.

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The monster pay package is partly a result of Snowflake’s surging valuation. In October 2018, about six months before Slootman joined and negotiated his compensation, the company raised funds at a valuation of about $3.5 billion. It’s now worth $96 billion.

Chief Financial Officer Michael Scarpelli, who joined a few months after Slootman, has a similar compensation structure. His options are worth about $25 million a month at the current share price. Snowflake co-founder Benoit Dageville, who’s also chief technology officer, owns a $2.73 billion stake.

Snowflake is the third CEO gig for the Dutch-born Slootman in less than 20 years. He led data-storage firm Data Domain from 2003 until its takeover by EMC Corp. in 2009, then ran cloud-service firm ServiceNow Inc. from 2011 to 2017.

My Name is Atrox and I am also the main source from The Truth Wire of all the exclusive and most delicate visualization of the activities in the education sector. My first step towards this journey was taken in the very early years of my life. I started with an independent Science and tech consultant. Email [email protected]
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