Spotify co-founders Daniel Ek and Martin Lorentzon have cashed in a combined $900 million in stock payouts this year, following a remarkable surge in the streaming giant’s market value, which has approached $100 billion.
This rise marks an extraordinary recovery from previous years when the company’s valuation had dropped below $20 billion.
According to filings with the U.S. Securities and Exchange Commission, senior executives and board members of Spotify sold a total of $1.25 billion in stock throughout 2024. These stock sales, which were primarily concentrated in November and December, highlight the financial rewards for Spotify’s leadership as its share price tripled.
Ek, Spotify’s CEO, sold nearly $350 million worth of shares, including a notable $28 million in a single December transaction. Bloomberg now estimates Ek’s net worth to be over $7 billion. Lorentzon, who continues to serve on Spotify’s board, sold more than $550 million in stock, solidifying his place among the wealthiest corporate figures globally.
Other executives also benefited from the surge in Spotify’s stock price. Chief Product Officer Gustav Söderström sold $106 million in shares, while Chief Business Officer Alex Norström sold $63 million.
Spotify’s stock resurgence is largely attributed to its renewed focus on profitability. After significant layoffs in 2023 and price hikes across various markets, the company has posted profits every quarter in 2024 without sacrificing subscriber growth.
This approach has not gone unnoticed on Wall Street. Analysts from Bank of America praised Spotify for its “incredible” profit margin improvements, while Morgan Stanley highlighted its transition from a growth-driven company to one now focusing on “emerging profit opportunities.”
Spotify’s turnaround has positioned the company alongside streaming giants like Netflix, with both firms now seen as the dominant players in the streaming wars. The company’s ability to balance profitability with growth has been key to its success, allowing it to emerge as a leading force in the industry.
The stock sales by Spotify insiders were a mix of pre-arranged divestiture plans and spontaneous transactions. A company spokeswoman clarified that the sales were part of long-term financial planning for executives, most of whom are compensated heavily in company stock.
Spotify’s board members also shared in the financial windfall. Ted Sarandos, CEO of Netflix and a Spotify board member since 2016, sold $6 million worth of Spotify shares this year, further adding to the significant wealth generated by the company’s successful year.
