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Snap CEO Evan Spiegel
- Snapchat parent company Snap is appointing an ex-Amazon exec as its new CEO.
- Tim Stone is replacing Andrew Vollero, who was in the job for just over two years.
- Snap has had a turbulent year since its IPO, and its stock recently plummeted after disappointing earnings.
Snapchat's parent company Snap Inc. is getting a new
Andrew Vollero, the company's first chief financial officer, is stepping down, the company announced in a financial filing on Monday. He's being replaced by Tim Stone, a veteran executive from Amazon.
Vollero's departure comes after a turbulent year for Snap since going public in March 2017. It has faced sustained pressure from Facebook, and after it announced it failed to meet analysts' expectations for Q1 2018, its stock cratered as much as 17%.
Now, a week later, it's bringing on a new CFO with the offer of a hefty paycheck. Stone, 51, will be paid an annual salary of $500,000, plus $20 million in restricted stock units and 500,000 options to purchase Class A shares.
$19 million of Stone's restricted stock vests over four years, while a $1 million "sign-on" grants vests in 6 months. Stone was most recently VP of finance at the online retail giant, where he has worked since March 1998.
Snap said in its filing that Vollero was not leaving because of any disagreement with the company or any matters related to accounting, operations of strategy at Snap. Vollero will stay on at as non-employee advisor at Snap until August, drawing his regular salary. Vollero will also receive a payment of one year's salary, which was $450,00 at the end of last year, and all of his unvested stock will vest.
In a statement, CEO Evan Spiegel said of Vollero: "I am deeply grateful for Drew and his many contributions to the growth of Snap ... He has done an amazing job as Snap's first CFO, building a strong team and helping to guide us through our transition to becoming a public company. The discipline that he has brought to our business will serve us well into the future. We wish Drew continued success and all the best."
A history of big pay outs
Stone's sizable stock award pales in comparison to some of the compensation that Snap has previously doled out to other members of the executive team, however. In 2017 - the year Snap went public - Spiegel was granted a whopping $637 million stock award, on top of a salary of just under $100,00.
Chief strategy officer Imran Khan, meanwhile, got paid $400,000 and received $100 million in stock awards. And general counsel Michael O'Sullivan got a $202,000 salary, a $200,000 bonus, and $16 million in stock awards.
Snap has lost money for the past three years.
Vollero was appointed CFO in February 2016, and previously worked as VP of finance for a little under a year before that.
Get the latest Snap stock price here.