Frank Slootman, the veteran tech executive, is set to step down as CEO of Snowflake, and the news has not been well-received by investors. The company’s stock price has plummeted by more than 24% in after-hours trading following the announcement.
Key Takeaway
Franck Slootman’s departure as CEO of Snowflake has led to a significant stock price drop, while Sridhar Ramaswamy, the former head of Google Ads, is set to take over as the new chief executive.
New Leadership at Snowflake
Slootman will transition into the role of chairman of the board, while Sridhar Ramaswamy, the former head of Google Ads, will assume the position of chief executive. Ramaswamy joined Snowflake after the company’s acquisition of AI search engine Neeva last year.
Financial Performance and Guidance
Amidst the leadership changes, Snowflake also reported its earnings, revealing a revenue of $738 million, marking a robust 33% year-over-year growth. The company provided guidance for the next quarter, projecting revenue between $745 and $750 million, with a growth rate of 26-27%.
Slootman’s Tenure and Compensation
Slootman took the helm at Snowflake in 2019, succeeding veteran executive Bob Muglia, and was instrumental in the company’s initial public offering the following year. During his tenure, the company’s stock performed well, experiencing an approximate 50% increase, before the recent decline.
Notably, Slootman received substantial compensation, including a base salary of $375,000 and lucrative stock options. Reports indicated that at one point, he was earning an astounding $95 million per month.
Controversies and Previous Roles
Slootman sparked controversy in 2021 with remarks about diversity and merit, which he later retracted following criticism from industry peers. Prior to his role at Snowflake, he served as chairman and CEO at ServiceNow for six years.
