Snowflake’s CEO Shakeup: A Tale of Surprises and Stock Plunge

In a surprising turn of events, Snowflake’s CEO, Frank Slootman, has announced his departure, sending shockwaves through the tech world. Investors reacted swiftly, with the company’s stock price plummeting over 20% in after-hours trading.

Slootman, a seasoned tech executive, has been at the helm of Snowflake since 2019, guiding the company through its successful IPO. He will now step back into the role of Chairman of the Board, while Sridhar Ramaswamy, formerly of Google Ads, will take over as CEO.

While the executive shuffle dominated the headlines, Snowflake’s earnings report was overshadowed. The company reported a solid 33% year-over-year revenue growth to $738 million, with guidance for the next quarter projecting a respectable 26-27% growth.

Slootman’s tenure at Snowflake was marked by his outspoken personality and generous compensation. His base salary of $375,000 was complemented by a lucrative stock option package, reportedly earning him a staggering $95 million monthly at one point.

Despite his financial success, Slootman courted controversy in 2021 with comments suggesting that diversity should not take precedence over merit. He later retracted these remarks after facing backlash from the tech community.

Prior to joining Snowflake, Slootman had a successful stint as Chairman and CEO of ServiceNow. With his substantial wealth, it remains to be seen whether he will retire or pursue other ventures.

As the dust settles on this executive shakeup, investors will be closely monitoring Snowflake’s performance under its new leadership. The company’s strong growth trajectory and Ramaswamy’s experience in AI technology suggest a bright future, but only time will tell if the stock price will recover from this sudden drop.