Spotify CEO Daniel Ek has cashed in $178 million in stock profits this year



How does an government reward on their own for a occupation properly carried out? When you don’t just take a wage, the only selection is to provide off bits of the corporation you designed productive. So is the circumstance of Spotify CEO Daniel Ek, who has taken care of himself to a important payday this calendar year in the variety of share gross sales. 

And the Spotify co-founder isn’t the only 1 at the company who has been reaping the benefits from the group’s share cost explosion this calendar year.

Spotify execs cashing in

In accordance to SEC filings analyzed by Fortune, executives at the organization are setting up to money in on the streaming group’s resurgent share cost. 

Five present-day customers of Spotify’s C-suite and Paul Vogel, the not too long ago departed ex-chief money officer, have offered $254.4 million truly worth of shares since the beginning of 2024. 

The bulk of that withdrawal has come from Ek, who cashed out $118.9 million in shares next the group’s Q2 outcomes, which adopted a $59.9 million sale in February.

The Spotify CEO hasn’t taken a wage given that 2017, according to business filings. He was likely one particular of the worst-compensated key tech CEOs last year, as the manager held off on selling any shares in the business. He received $1.4 million in “other payment.”

Gustav Söderström, Spotify’s main technical officer and main persons officer, has bought a overall of $40.7 million well worth of shares considering the fact that the begin of the yr. He vested about $30 million of that in two tranches on Wednesday and Thursday.

Alex Norstrom, the group’s main enterprise officer, has banked a comparatively modest $12 million from stock sales this 12 months. Dustee Jenkins, Spotify’s main community affairs officer, cashed in $343,000 in March.

Katrina Berg, Spotify’s main human assets officer, vested $7.7 million well worth of shares in February. 

Previous CFO Paul Vogel, meanwhile, took residence $14 million, also in February. 

Vogel was booted from his part as Spotify CEO in December when the company laid off 1,500 staff. All over the time of the announcement, Vogel offered $9.4 million well worth of shares.

A spokesperson for Spotify said: “As portion of his lengthy-phrase economic planning, Daniel Ek has bought some of his Spotify shares. These income account for a restricted amount of Mr. Ek’s holdings in the corporation.”

Spotify’s payday

It’s not distinct what just enthusiastic Ek and his colleagues to make these massive withdrawals to get started the 12 months. For the 2023 fiscal calendar year, the leading 5 execs at Spotify cashed in a blended meager $6.3 million truly worth of shares. 

But it in all probability has a thing to do with Spotify’s great begin to 2024.

Shares in the group have enhanced far more than 60% considering the fact that the start off of the calendar year, incorporating extra than $20 billion to the group’s valuation. 

Talking just after the business introduced file quarterly gains Tuesday, Ek hailed a new period of monetization at the corporation, which has been able to raise subscription selling prices though incorporating new users. It has also refined its formerly highly-priced podcast division to bulk up its margins.

But Spotify’s return to in close proximity to-file valuations has been a rocky road, and not with no its fair share of departures.

The team laid off 1,500 staff members in December as component of a enormous efficiency push, with Ek arguing his staffers ended up accomplishing as well substantially “work close to the operate.” Shares in the group have ongoing to rise due to the fact the layoffs.

Nonetheless, for the duration of the company’s hottest earnings contact, Ek acknowledged that the layoffs, equal to 17% of personnel, had impacted day-to-working day functions extra than he had anticipated. That shock adjustment was even partly dependable for the group failing to hit its lofty targets for monthly energetic people and quarterly revenue.



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