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Spotify's top executives and board members sold $1.25 billion worth of company stock in 2024 — including $900 million in payments to its co-founders — as they cash in on the music player's rising stock price.
The amount was $1.25 billion I spent By about 20 executives and board members during the year, with stock sales increasing in November and December, according to a Financial Times analysis of filings with the U.S. Securities and Exchange Commission.
shares Spotifylisted on the New York Stock Exchange, has nearly tripled in 2024, hovering near a market cap of $100 billion. It's a sharp turnaround from 2022 and 2023 when the group's share price fell to an all-time low, trading with a market capitalization of less than $20 billion.
Longtime employees and senior executives are now reaping the financial rewards. Combined, the co-founders' transactions raised their dividends to the top level of company leadership. Palantir founder Alex Karp and computer scion Michael Dell also sold more than $1 billion this year, Securities and Exchange Commission filings show.
Some of Spotify's stock sales were carried out pursuant to pre-arranged divestiture plans shared between CEOs who were compensated with company stock, while others were not, securities filings show. “As part of their long-term financial planning, several Spotify executives have sold some of their Spotify shares,” a company spokeswoman said.
CEO Daniel Ek, who founded Spotify in Sweden in 2006 with Martin Lorentzon, sold nearly $350 million worth of stock in 2024. He sold shares until December 11, when he cashed out $28 million. Bloomberg estimates Ik's net worth at more than $7 billion.
Lorentzon, who remains on Spotify's board, sold more than $550 million worth of stock in 2024, according to Securities and Exchange Commission filings.
Gustav Soderström, Spotify's chief product and technology officer, who has been with the company since 2009, sold more than $106 million worth of stock in 2024.
Chief Human Resources Officer Katarina Berg sold $38 million worth of stock, while Chief Business Officer Alex Norstrom reaped $63 million in stock sales during the year.
Dusty Jenkins, Spotify's head of public relations, who joined the company from retailer Target in 2017, has sold more than $6 million worth of stock this year.
Netflix CEO Ted Sarandos, who has served on Spotify's board of directors since 2016, received $6 million from the sale of his Spotify shares this year.
Spotify and Netflix have jumped into the music and TV competition, emerging as undeniable winners in the “streaming wars.”
Wall Street rewarded Eck for his new focus on profitability. After firing a quarter of its employees in 2023 and rising subscription prices, Spotify has taken a hit profit in every quarter of 2024. It did so without sacrificing subscriber growth. The streaming group continued to add customers at a dizzying pace, even as it raised prices in dozens of countries.
Bank of America analysts in November raised their forecasts for Spotify shares, citing “amazing” profit margin performance this year.
“Spotify has always had a strong, unique product offering and opportunity for growth,” Morgan Stanley analysts wrote. “In 2024, we start to see the profit opportunity emerge.”
