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>>> Snowflake CEO Collects a $95 Million Payout — Every Month


Bloomberg

by Tom Maloney

December 4, 2020


https://finance.yahoo.com/news/snowflake-ceo-collects-95-million-153441751.html


(Bloomberg) -- Snowflake Inc. is doing well by any stretch of the imagination.

This week, the cloud-computing company reported that third-quarter revenue more than doubled from a year earlier, and its stock has surged 223% 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 more than $108 million each, or about $1.3 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 $5.2 billion based on the latest share price. Snowflake shares jumped more than 14% on Friday to $387.70.

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.

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 almost $110 billion.

Chief Financial Officer Michael Scarpelli, who joined a few months after Slootman, has a similar compensation structure. His options are worth about $29 million a month. Snowflake co-founder Benoit Dageville, who’s also chief technology officer, owns a $3.1 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.

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