Wednesday, February 21, 2024

Snowflake CEO Receives $ 95 Million Payment Every Month

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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 that its stock had jumped 183% to $ 339.89 since its IPO on September 15.

This helped make CEO Frank Slootman one of the highest paid tech executives. A compensation he received on joining Snowflake in April 2019 grants him a bundle of options each month – for four years – which are now worth nearly $ 95 million each, or roughly $ 1.1 billion per year.

Slootman’s compensation includes over 13.7 million options with an exercise price of $ 8.88. The vast majority can already be exercised, but the underlying stocks vest monthly over four years, starting with the month it started.

He also receives an annual base salary of $ 375,000, which can increase based on the performance of the company.

Once the full options package paid in early 2023, it would be worth around $ 4.5 billion at the current share price.

A spokeswoman for Snowflake, based in San Mateo, Calif., Declined to comment on Slootman’s compensation or net worth.

He has not exercised any of his options and his shares are subject to a blocking period that ends in March.

The monster pay package is in part the result of Snowflake’s rising valuation. In October 2018, roughly six months before Slootman joined and negotiated his compensation, the company raised funds worth around $ 3.5 billion. It is now worth $ 96 billion.

CFO Michael Scarpelli, who joined a few months after Slootman, has a similar compensation structure. His options are worth around $ 25 million per month at the current share price. Benoit Dageville, co-founder of Snowflake, who is also chief technology officer, has a stake of $ 2.73 billion.

Snowflake is the third Dutch-born Slootman CEO concert in less than 20 years. He ran data storage company Data Domain from 2003 until it was acquired by EMC Corp. in 2009, then headed a cloud services company. ServiceNow Inc. from 2011 to 2017.

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