Kylie Jenner’s tweet cost Snapchat $1 billion in market capitalization
Snapchat CEO Evan Spiegel earned $638 million in 2017
Snap Inc. went public last year, since then its stock investors might not have made enough money but CEO Evan Spiegel certainly received a hefty payday. In its first Annual report as a public company, the report revealed how much power Spiegel holds.
• CEO Evan Spiegel controls 48.4 percent of the total voting power for the company.
• Spiegel’s post-IPO bonus represented 3 percent of the total stock outstanding at the time of the IPO and will be paid out over three years.
• In the event of death or termination, Spiegel will have a lot of power.
The entire annual report can be viewed here.
Evan Spiegel earned whopping $638 million in 2017. During the IPO, Spiegel was granted an RSU of 37,447,817, which was worth nearly $636.6 million. For the year 2017, he received the salary of $98,078 and also earned over $1 million in other benefits, making it third highest CEO payout ever.
“I believe this is the largest value we have seen in the 10 years we’ve been compiling annual ‘highest-paid’ CEO studies,” said Dan Marcec, Director of Content at executive compensation data firm Equilar.
Snap Inc. stock faced some heat after reality TV star Kylie Jenner’s tweet. Kylie has 24.5 million followers on Twitter. With such huge fan base, any tweet can create the stir on the twitter-sphere and internet. Kylie joined the other voices criticizing Snapchat’s redesign. Its stock fell more than 7% on Thursday. Snap lost well over $1 billion in market capitalization on Thursday. In the below video CNBC reporters are discussing how Kylie’s tweet is the main reason behind the fall of the stock price.
It’s really amazing to see how a single tweet can cost you billion dollars. Snap’s new redesign has been criticized for blurring separate features together and promoting sponsored content.