Spotify CEO Daniel Ek has raked in nearly $119 million in a stock sale after recently overseeing the layoff of 1,500 employees — a reduction that Ek himself acknowledged created a “significant” challenge” for the streaming company.
Daniel Ek’s big stock sale also comes at a time when artists are complaining that Spotify is hoarding money by being stingy with royalty payments.
This week, Ek sold 400,000 share units in Spotify, with a total market value reported as $118.8 million, according to an SEC filing. This marks the fourth time in the past 12 months that Ek has cashed in some of his Spotify stock, according to a report from the site Music Business Worldwide.
The four transactions reportedly total approximately $340.5 million.
In December, Spotify laid off 1,500 employees, or 17 percent of its workforce, as part of an effort to achieve profitability.
This week, Ek acknowledged that the layoffs created problems.
“Another significant challenge was the impact of our December workforce reduction,” he reportedly said during an earnings call.
“Although there’s no question that it was the right strategic decision, it did disrupt our day-to-day operations more than we anticipate. It took us some time to find our footing, but more than four months into this transition, I think we’re back on track.”
Spotify is facing accusations that it being stingy with royalties after it changed the way it compensates artists by “bundling” certain subscription plans — a move that doesn’t sit well with creatives..
The National Music Publishers Association, which represents prominent music publishers, told MBW that “it appears Spotify has returned to attacking the very songwriters who make its business possible.”
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