Frank Slootman Steps Down as Snowflake CEO, Leaves Behind $3.7B Legacy

Snowflake Inc SNOW recently saw the departure of its CEO, Frank Slootman, who steps down with a net worth of approximately $3.7 billion, surpassing other tech giants like Apple Inc’s AAPL Tim Cook and Microsoft Corp’s MSFT Satya Nadella in personal wealth. 

Slootman’s financial success is notable for a non-founder in the tech sector, having led Snowflake and ServiceNow through their initial public offerings and overseeing Data Domain’s acquisition by EMC Corp. 

Known for his direct leadership style, Slootman has been a pivotal figure in the tech sector, admired for his relentless approach to company building, Bloomberg reports.

However, Slootman’s exit coincided with a significant stock price drop for Snowflake, which was attributed to disappointing sales forecasts and reduced his net worth by about $500 million. 

Despite speculation, Slootman dismissed the notion that his departure was linked to the company’s growth outlook. 

Over his tenure, he sold shares at a considerable profit and managed the largest software IPO with Snowflake in 2020. 

Controversies have followed Slootman, notably regarding his comments on diversity hiring practices and political donations. Still, his legacy includes significant financial gains for himself and a reputation for decisive company leadership. 

His successor, Sridhar Ramaswamy of Alphabet Inc GOOG GOOGL Google fame, steps in as a technical leader with a substantial compensation package, highlighting the exceptional wealth and influence achievable in the tech industry, even for those not company founders.

In March, Snowflake reported fourth-quarter revenue of 774.7 million, above the consensus of $759.1 million.

Investors can gain exposure to Snowflake via Spear Alpha ETF SPRX and ProShares Big Data Refiners ETF DAT.

Price Action: SNOW shares traded lower by 5.36% at $176.76 on the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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