Spotify co-founders Daniel Ek and Martin Lorentzon collectively earned a staggering $900 million from stock payouts in 2024 as the company’s market value soared to nearly $100 billion. This represents a remarkable recovery from earlier years when Spotify’s valuation dipped below $20 billion.
The financial gains for Spotify’s leadership came during a year marked by a tripling of the company’s share price, driven by strong performance and investor confidence. Senior executives and board members sold $1.25 billion in stock throughout the year, according to filings with the U.S. Securities and Exchange Commission. Most of these sales occurred in November and December, underscoring the financial benefits of Spotify’s resurgence.
CEO Daniel Ek sold nearly $350 million worth of shares, including a $28 million transaction in December alone, pushing his estimated net worth to over $7 billion, according to Bloomberg. Lorentzon, who remains on Spotify’s board, sold more than $550 million in stock, solidifying his position among the world’s wealthiest corporate leaders. Other top executives also capitalized on the stock surge: Chief Product Officer Gustav Söderström sold $106 million worth of shares, while Chief Business Officer Alex Norström earned $63 million through similar transactions.
What’s Driving Spotify’s Resurgence?
Spotify’s resurgence in 2024 can be attributed to a sharp focus on profitability. After implementing significant layoffs in 2023 and raising subscription prices across dozens of markets, the company reported profits every quarter in 2024.
- Crucially, Spotify achieved this without slowing subscriber growth, continuing to add users at a rapid pace.
- Wall Street has responded positively. Bank of America analysts praised Spotify’s “incredible” improvements in profit margins, while Morgan Stanley highlighted its shift from being purely growth-driven to having “emerging profit opportunities.”
- Spotify’s financial turnaround has placed it in the same league as Netflix in terms of market dominance. Both companies have solidified their leadership in the streaming industry, emerging as victors in the so-called “streaming wars.”
The stock sales by Spotify insiders were a mix of pre-arranged divestiture plans and ad hoc transactions. According to a company spokeswoman, these sales were part of long-term financial planning for executives who receive much of their compensation in stock.
Even board members joined the windfall. Ted Sarandos, Netflix CEO and a Spotify board member since 2016, sold $6 million worth of shares this year, further demonstrating the financial rewards of Spotify’s comeback.