With COVID, almost all cloud storage and computing companies have seen a huge boost in revenue. And yes, Snowflake is no different. In 2020, the revenue of the company has more than doubled as compared to 2019. And this affected the share prices of the company too. Since it went public in September 2020, its stock prices have increased phenomenally. Well, what all this added up to? It made Snowflake’s CEO receive an annual package of around $1.14 billion, which is huge.
About Snowflake
Snowflake was founded in 2012 by Benoit Dageville, Thierry Cruanes, and Marcin Zukowski. The company provides cloud storage and analytics services and raised a $1.4 billion capital initially. Snowflake service is top-notch, and the company has also changed the platform it runs on 3 times since 2014. The company presently depends on the Google Cloud Platform, which brings very secure data storage and exchange. Its share prices surged by 14.07% on December 4th’s trading session and are currently trading at $387.70.
Payout of Snowflake’s CEO
In addition to the base salary of $375,000 that Frank Slootman, CEO of Snowflake, receives, he also has options yielding about $1.3 billion annually. He has 13.7 million options with a price of $8.88, and most of them can be exercised. Since all the options are not yet usable, so once they do, the entire options package will be worth $5.2 billion.
The share prices of the company are also a major factor of this massive package. About 6 months ago, the company was sitting at an evaluation of $3.5 billion, which is now worth $110 billion. This actually shows how good the company has done under his leadership. As of now, Frank hasn’t exercised his options and might be waiting for the lockdown period to end in March.
Compensation Structure of other important officials of Snowflake
Frank Slootman is not the only one who is enjoying such an extraordinary package from the company. Michael Scarpelli, the company’s chief financial officer, also has options worth $29 million monthly. While the co-founder of the company Benoit Dageville also owns a huge stake of $3.1 billion in Snowflake. All these individuals are doing great for the company, and the company is also appropriately compensating them.
What are your thoughts on the huge compensation package of Snowflakes’ CEO and Chief financial officer? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
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