Snap co-founders Evan Spiegel and Bobby Murphy filed documents concerning a plan to sell up to $256 million in Snap stocks when the company goes public in March. The IPO is hoping to price shares at $14 to $16, with a total of 200 million Class A shares available, valuing the company up to $22 billion. The co-founders are the company's largest shareholders, with a combined total of 89% of the voting rights after the IPO. Their initial plan is to sell 16 million Class A shares, which will come with voting rights. This will leave them with the same decision making power over the future of the company as before the IPO.
When the company goes public, Spiegel will receive an award of 3% of the stock as CEO which will be valued at up to $588 million. Spiegel's base salary will be reduced to $1 when the IPO is registered, and his bonus (up to an annual $1 million) will be based on the company performing well. This prospective bonus will put him at double his previous salary of $500 thousand,
According to their filings, Murphy was only making $250 thousand as of December 31st. It remains to be seen how the new contract will address this difference.
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Aside from Spiegel and Murphy, other individual stakeholders include board member Mitch Lasky, who will make up to $171 million from 10.7 million shares, and chairman of the board Michael Lynton, who can make nearly $900k from selling around 55k shares. The venture capital firms who were early investors are also reaping their rewards for their intelligent insights. Lightspeed Partners stands to make up to $74 million from selling 4.6 million shares, while General Catalyst can make up to $9 million with around 550k shares.
