Spotify CEO Daniel Ek is set to sell off a portion of his shares on the company’s platform after the gross margin grew 27.6% in Q1, up 234 bps year over year.
Five executive members of Spotify, including the former CFO Paul Vogel, have sold their shares for $254.4 million since the beginning of 2024.
Daniel EK led the pack into selling off their shares when he first sold his $118.9 million shares following the group’s Q2 result.
According to reports, Daniel EK has indicated the sale of over 650,000 shares through different transactions. Leaving his previous selling pattern in 2021. Daniel Ek disclosed this, stating he has been one of the most underpaid major tech CEOs since last year. He was being paid $1.4 million every month.
Gustav Soderstorm, the chief people’s officer, sold his shares for $40.7 million.
Alex Norstorm, the chief business officer, sold his shares for $12 million from stock sales. Dusted Jenkins, the chief public affairs officer, received $343,000 in March 2024.
The chief human resources officer, Katrina Berg, invested over $7.7 million in Spotify shares in February 2024.
A Spotify spokesperson stated that Ek’s share sales were part of his long-term financial planning and represent only a fraction of his holdings in the company.
A Spotify spokesperson said Daniel Ek’s shares were part of his long-term financial planning and represent only a small part of what he owns in the company.
The company’s strong financial performance at the beginning of 2024 was linked to its executive sales share. Their shares had risen by over 60% since January, adding $20 billion to the company’s value, which caused the executives to build on this growth.
Spotify’s different challenges since December have not stopped it from retaining over 1,500 members. Daniel Ek attributes the layoff to the company’s improvement in share performance.
Daniel Ek, during the last press hearing, said that the layoff had a more significant impact on the day-to-day operations than expected, which has affected the target for monthly active users.
While also signalling his strategic intent to check out new investment platforms, Ek decided to divest shares because of his confidence in Spotify’s current performance.
Daniel Ek also demonstrates a better understanding of financial management principles and a tremendous approach to wealth by restructuring his portfolio.
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