It seems that Frank Slootman, a seasoned tech executive, has made quite an impression on investors. The news of his departure as CEO of Snowflake has caused quite a stir in the market, with the company’s stock price plummeting by over 24% in after-hours trading.
Slootman will now transition into the role of chairman of the board, while Sridhar Ramaswamy, the former head of Google Ads, will be taking over as the new chief executive. Ramaswamy joined Snowflake when the company acquired AI search engine Neeva last year.
Amidst the news of this executive shuffle, the company’s earnings report went unnoticed. According to the report, Snowflake saw an impressive 33% increase in revenue, reaching $738 million. The guidance for the next quarter is projected to be between $745 and $750 million, with a growth rate of 26-27%.
In 2019, Slootman took over as CEO from veteran executive Bob Mugli and was tasked with taking the company public the following year. During his tenure, Snowflake’s stock performance has been quite promising, with a growth of around 50%. However, due to today’s negative market reaction, it is difficult to determine the exact percentage.
Slootman’s compensation package also made headlines. With a base salary of $375,000, and a lucrative stock option, he was reportedly making an astounding $95 million per month, as reported by Fortune.
“Diversity should not overlook merit,” Slootman famously told a reporter in 2021. However, after receiving backlash from industry peers, he later clarified his comments.
Prior to his time at Snowflake, Slootman spent six years as chairman and CEO of ServiceNow. With his hefty compensation package, perhaps he will choose to retire and enjoy his wealth.
