The CEO of the Silicon-Valley based cloud data-warehousing firm Snowflake Inc. collects a staggering $95 million pay out every month, as the tech company’s share prices continue to surge.
Earlier this week, Snowflake reported that its third-quarter revenue more than doubled on the same time period last year, and it stock has jumped 223 percent since its record-breaking September 15 initial public offering (IPO).
Chief Executive Officer Frank Slootman is reportedly reaping the benefits of the company’s success, which has helped to make the 62-year-old one of the best-paid technology executives in the industry.
A compensation package he received upon joining Snowflake in April 2019 reportedly awards him a selection of options every month for four years that are now worth more than $108 million each, or about $1.3 billion annually, according to Bloomberg.
Slootman’s pay package includes in excess of 13.7 million options each with a fixed price of $8.88. The majority can already be exercised but the underlying shares vest monthly, beginning the month he started at the company, according to the outlet.
The Dutch-born executive also reportedly receives an annual base salary of $375,000, which can be increased subject to the firm’s performance.
Snowflake CEO Frank Slootman is reportedly reaping the benefits of the company’s success and is collecting a staggering monthly pay out of $95 million
Company shares jumped just over 14 percent on Friday to $387
Based on the current share price, once Slootman’s full options package is paid out in April 2023, it will be worth around $5.2 billion. Company shares jumped just over 14 percent on Friday to $387.
According to Bloomberg, Slootman has not yet exercised any of his options and his shares are contingent to a lockup period that’s due to expire in March 2021.
Earlier this week, Snowflake reported that its third-quarter revenue more than doubled on the same time period last year, and it stock has surged 223 percent since its September 15 initial public offering
Slootman’s eye-watering pay package comes partly as a result of Snowflakes skyrocketing valuation.
Around six months before Slootman joined the company, Snowflake raised funds in October 2018 at a valuation of around $3.5 billion; the company is now worth nearly $110 billion.
His reported total compensation for 2019 was higher than that of the CEOs of Microsoft, Oracle, and Salesforce, according to Business Insider.
Snowflake CFO Michael Scarpelli who joined just months after Slootman, also reportedly has a similar compensation structure, with his options said to be worth around $29 million a month.
Company co-founder Benoit Dageville, who also serves as chief technology officer, meanwhile, owns a $3.1 billion stake.
Snowflake made history in September when it became the largest software company to IPO in US history.
Initially expected to price shares between $75 and $85, the company went public at $120, catapulting up to $300 in its first day of trading.
As a result, the company broke another record: Snowflake became the largest company to ever double in value on its opening day, reaching a market cap of close to $75 billion.
Prior to Snowflake, Slootman has served as CEO for two other companies in the last two decades, including data-storage firm Data Domain, where he worked until its takeover by EMC Corp in 2003, and cloud-service firm ServiceNow Inc. where he worked from 2011 to 2017.
The billionaire business reportedly keeps a tight lid on his personal life, but he is married to Brenda Lynne Slootman, with the couple said to have at least one child together.
Brenda, who is 61, is the Vice President and Secretary of the Slootman Family Foundation.
The billionaire business reportedly keeps a tight lid on his personal life, but he is married to Brenda Lynne Slootman (above), with the couple said to have at least one child together
In his spare time, Slootman is a keen sailor and regatta racer. He reportedly once owned a yacht called The Invisible Hand, winning a number of international competitions
In a 2017 interview with Dutch language publication Nautique, Slootman (pictured left, and right, in 2017) told the outlet: ‘Regatta racing is the only thing that completely unplugs my mind from business pursuits.’
Slootman was born in the Netherlands in October 1958. He attended the Netherlands School of Economics and graduated in 1977. Afterwards, he attended Erasmus University Rotterdam where he studied for more than seven years.
He then moved to the USA in 1984 to work for Burroughs Corporation, and later went on to work for Compuware and software company Borland, before joining Data domain where he later became CEO.
In his spare time, Slootman is a keen sailor and regatta racer. He reportedly once owned a yacht called The Invisible Hand, and won a number of international competitions.
In a 2017 interview with Dutch language publication Nautique, Slootman told the outlet: ‘Regatta racing is the only thing that completely unplugs my mind from business pursuits.’
He later told Blocks and Files in 2019: ‘Sailing is in one’s blood. I campaigned our TP52 ‘Invisible Hand” for three years. We won many races, including the Transpac overall in 2017, but I sold and donated all my boats so I can concentrate on the Snowflake journey.
‘I need to spend the little bit of time I have left over with my family, not sailing. I will return to it at some point.’
According to Forbes, Slootman’s net-worth as of September 2020 was valued at $1.8 billion, though he told the network is status as a billionaire ‘means very little’.
Slootman insisted his decision to join Snowflake wasn’t motivated by money. He said he doesn’t ‘keep score’ or compare himself to other industry leaders, but enjoys company-building above all.
‘I crawled on the shore in this country, literally with 100 bucks in my pockets, and I’m not exaggerating when I say when I say that,’ he said. ‘I’m a huge bull on the opportunity in this country, I just can’t help it because I’ve lived that.’