Pandora CEO Joe Kennedy Steps Down, Stock Surges 20%
The stock jumped on the news because the company beat its revenue expectations.
It's not clear if a Kennedy will be given a severance package, because he's stepping down voluntarily.
There are certain clauses in the company's DEF 14A filing that trigger packages between $7 and $9 million, depending on the reason for the end of his employment.
Kennedy has been with Pandora for ten years, and he helped grow the digital radio company to 67 million monthly active listeners with total revenue of $427.1 million in fiscal 2013. $255.9 million of that is mobile revenue, a feat few other companies have conquered.
"On behalf of the Board, I would like to thank Joe for his leadership, dedication and innumerable contributions to Pandora,” Robert Kavner, Pandora’s Lead Independent Director, said in a press releases. “During his tenure, Joe and his management team created a terrific business from the ground up, and, through his stewardship during the formative stages of Internet radio, Pandora now leads with 70% market share. We appreciate his continued strong leadership and dedication to the Company through this process.”
“As I near the start of my tenth year at the helm of Pandora, I am incredibly proud of the team and what we have accomplished in redefining radio," Kennedy says in the release. "As part of our Board discussions of the road that lies ahead, I reached the conclusion and advised the Board that the time is right to begin a process to identify my successor.”
Here's the live blog of Pandora's fourth quarter earnings call, which is happening right now.