Snowflake [$SNOW] is going bananas, surpassing IBM in market cap after being on the market for only 12 weeks. Normal? On Wednesday, the cloud-computing company reported that Q3 revenue more than doubled from 2019, and the stock has soared 183% to $339.89 since the IPO in September.
$SNOW has been on a crazy bender in its short life as a public company. The cloud-based provider of data warehousing software, which makes it easier for companies to compile, view, analyze and share data from a single dashboard, the IPO was in September at $120 a share.
Needless to say, its helped make CEO Frank Slootman one of the best-paid tech-exec’s he received a lavish compensation package upon joining Snowflake in April 2019, which grants him a slug of options every month—over four years—that are now worth almost $95 million each, or about $1.1 billion annually. He’s sitting on 13.7 million options with a strike price of $8.88. and while taking down a $375,000 annual base salary.
Once the options package is totally paid out in early 2023, it would be worth about $4.5 billion at the current stock price. The massive pay package is due in part to a result of Snowflake’s soaring valuation. In October 2018, about six months before Slootman joined the team, the company raised put up a valuation of about $3.5 billion. Today, it’s worth $96 billion.
CEO Michael Scarpelli, who joined a few months after Slootman, has a similar compensation structure. His options are worth about $25 million a month at the current share price.