Snowflake bets on ambitious growth with $448M CEO incentive plan

Snowflake unveiled a compensation package worth up to roughly $448 million for CEO Sridhar Ramaswamy, ​hinging on the cloud-based data analytics platform’s ‌market value almost doubling to $184 billion in seven years.

Ramaswamy’s award, totaling 1 million shares, is structured into five tranches, each ​with escalating stock price milestones, and is ​designed to retain him as CEO until September 15, 2030.

Snowflake ⁠has been benefiting from clients shifting their workloads to its cloud ​platform as they invest to develop AI tools.

The company’s stock price would ​need to climb to $531 by July 15, 2033 from Wednesday’s closing price of $271.87 for the final tranche, adding up to $100 billion to its market ​capitalization.

Snowflake offers a platform where clients store and ​integrate their data in one place to generate business insights, ‌build ⁠AI tools and solve operational problems.

Ramaswamy must remain CEO through September 15, 2029 for the first two tranches and September 15, 2030 for the ​last three ​to meet ⁠the service-based requirement, the company said.

The compensation package also includes clawback clauses for misconduct ​or accounting restatements, according to a ​regulatory filing.
Snowflake ⁠shares have risen about 24% this year.

In May, the company raised its annual product revenue forecast and announced a ⁠five-year ​deal worth $6 billion with Amazon ​Web Services (AMZN.O), opens new tab to use AWS’s Graviton processors and AI infrastructure. Reuters