Senior executives and board members at Spotify have capitalised on the company’s remarkable stock performance in 2024, collectively selling £1.25 billion worth of shares. The streaming giant’s co-founders led the charge, securing £900 million of the total payouts as the company’s market value approached £100 billion.
The substantial cash-out, involving approximately 20 executives and board members, intensified during November and December, according to Securities and Exchange Commission filings. The company’s shares have demonstrated exceptional performance, nearly tripling in value throughout 2024, marking a dramatic recovery from its market capitalisation low of £20 billion in 2022-2023.
Co-founder and CEO Daniel Ek, who established Spotify in Sweden in 2006, realised £350 million from stock sales, with his most recent transaction of £28 million occurring on 11 December. His co-founder, Martin Lorentzon, who maintains his board position, secured even larger gains, selling shares worth £550 million during the year.
Other key executives also reaped significant rewards. Gustav Söderström, the company’s chief product and technology officer, sold shares valued at £106 million, while chief business officer Alex Norström and chief human resources officer Katarina Berg secured £63 million and £38 million respectively.
The company’s strategic shift towards profitability has earned widespread approval from Wall Street analysts. Following staff reductions of 25% in 2023 and subscription price increases, Spotify achieved consistent quarterly profits throughout 2024 while maintaining robust subscriber growth. Bank of America analysts highlighted the company’s “incredible” profit margin performance, while Morgan Stanley acknowledged the emergence of Spotify’s profit potential alongside its established product strength.
These transactions, some executed through pre-arranged divestiture plans common among equity-compensated executives, position the co-founders’ earnings among the highest in corporate leadership, matching the scale of stock sales by industry titans such as Palantir’s Alex Karp and computer magnate Michael Dell.
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