Snowflake unveils $448 million pay plan for CEO tied to ambitious stock targets

Cloud-based data analytics platform Snowflake has announced a significant compensation package for its CEO, Sridhar Ramaswamy, potentially worth up to $448 million. This substantial award is contingent upon the company achieving ambitious stock targets, specifically aiming for its market value to nearly double to $184 billion within seven years.

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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.

Ramaswamy's compensation is structured as an award of 1 million shares, divided into five tranches. Each tranche is linked to escalating stock price milestones. To secure the full award, Ramaswamy must remain CEO through September 15, 2029, for the initial two tranches and until September 15, 2030, for the remaining three. This structure is designed to incentivize long-term leadership and growth.

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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.

The company's stock price needs to reach $531 by July 15, 2033, from its recent closing price of $271.87 for the final tranche to vest. This would add approximately $100 billion to Snowflake's current market capitalization. Snowflake has seen its shares rise about 24% this year, benefiting from clients investing in AI tools and shifting workloads to its cloud platform. The company also recently announced a five-year, $6 billion deal with Amazon Web Services to utilize AWS's Graviton processors and AI infrastructure.

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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.