Spotify executives cash in as streaming service stock price soars

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Spotify’s senior executives and board members have sold $1.25 billion worth of shares in the company in 2024, including $900 million in payments to its two co-founders, as they capitalize on the music broadcaster’s soaring share price.

The amount was 1.25 billion dollars cashed out Stock sales surged in November and December by about 20 executives and board members during the year, according to a Financial Times analysis of filings with the U.S. Securities and Exchange Commission.

the shares of Spotify:which is listed on the New York Stock Exchange, nearly tripled to a market capitalization of about $100 billion in 2024. That’s a sharp turnaround from 2022 and 2023, when the group’s share price fell to an all-time low, selling With a market capitalization of less than $20 billion.

Long-time employees and senior executives are now reaping the financial rewards. Combined, the co-founders’ deals have moved their stock into the upper echelon of corporate leadership. Palantir founder Alex Karp and computer heir Michael Dell have also sold more than $1 billion this year, show SEC filings.

Some of Spotify’s stock sales were made in accordance with prearranged divestment plans common among the company’s stock-compensated executives, while others were not, according to securities filings A portion of the Spotify shares,” said a company representative.

CEO Daniel Eck, who co-founded Spotify in Sweden in 2006, sold about $350 million in shares in 2024. He sold the stock back on Dec. 11, when he cashed in at $28 million, according to Bloomberg Ek’s net worth is over $7 billion.

Lorenzo, who remains on Spotify’s board, sold more than $550 million worth of stock in 2024, according to SEC filings.

Spotify’s chief product and technology officer Gustav Soderström, who has been with the company since 2009, sold more than $106 million in stock in 2024.

Chief Human Resources Officer Katharina Berg sold $38 million worth of stock, while Chief Business Officer Alex Norström collected $63 million in stock sales during the year.

Spotify’s head of public relations, Dusty Jenkins, who joined the company in 2017 from retailer Target, has sold more than $6 million in stock this year.

Netflix CEO Ted Sarandos, who has been on Spotify’s board since 2016, made $6 million this year from selling his Spotify shares.

Spotify and Netflix have overtaken their music and TV rivals to emerge as the clear winners of the ‘streaming wars’.

Wall Street has rewarded Ek for its renewed focus on profitability.After laying off a quarter of its staff in 2023 and raising subscription prices, Spotify has: profit Every quarter of 2024. It did so without sacrificing subscriber growth. The streaming group continued to add customers at a blistering pace even as it raised prices in dozens of countries.

Analysts at Bank of America raised their stock outlook for Spotify in November, citing an “incredible” profit margin this year.

“Spotify has long had a uniquely strong product offering and growth opportunity,” Morgan Stanley analysts wrote.