Frank Slootman, the well-known tech executive, has announced his resignation as CEO of Snowflake, causing a significant drop of more than 24% in the company’s stock price in after hours trading.
Slootman will transition to the role of chairman of the board, while Sridhar Ramaswamy, former head of Google Ads and current CEO of AI search engine Neeva, will take over as chief executive.
Amidst the leadership change, Snowflake also released its earnings report, showing a revenue of $738 million, a healthy 33% increase year over year. The company anticipates revenue between $745 and $750 million for the next quarter, with a growth rate of 26-27%.
Slootman joined Snowflake in 2019, replacing Bob Muglia, with the task of taking the company public the following year. The stock had performed well over the past year, showing a growth of around 50% before the recent downward trend.
His compensation package was quite generous, with a base salary of $375,000 and substantial stock options. Reports indicated that at one point, Slootman was earning an astonishing $95 million per month.
In 2021, Slootman faced criticism for his comments on diversity and merit, which he later clarified and walked back after facing backlash from the industry.
Prior to Snowflake, he served as chairman and CEO of ServiceNow for six years. With his accumulated wealth, Slootman may choose to retire and enjoy his financial success.
