Snap CFO Tim Stone will be resigning from the company after only nine months, according to recent documents filed with the SEC. Stone left his post as vice president of finance for Amazon in May 2018 to join the Snapchat parent company and will be Snap’s second CFO departure in a year. According to CNBC, upon joining Snap, Stone was greeted with a $500,000 annual salary and restricted stock units worth $20m, set over the course of four years.
Both the SEC filing and Snap CEO Evan Spiegel have claimed Stone's sudden departure has nothing to do with financial disagreements with other executives, stating the CFO simply wants to pursue other opportunities. After the filing was made public, Snaps stock plummeted eight per cent in just a few hours.
“Mr. Stone has confirmed that this transition is not related to any disagreement with us on any matter relating to our accounting, strategy, management, operations, policies, regulatory matters, or practices (financial or otherwise),” Snap general counsel and secretary Michael O’Sullivan wrote. “Mr. Stone’s last day has not been determined. Mr. Stone will continue to serve as chief financial officer to assist in the search for a replacement and an effective transition of his duties, including through our scheduled full year 2018 financial results announcement.”
In the same filing, Snap announced they are finalizing the Q4 2018 results, which should be released to the public in the beginning of February. The report claimed the adjusted revenue results are “slightly favorable to the top end of our previously reported quarterly guidance ranges for each.” Executives also warned investors that Snap will continue to see a decrease in Snapchat’s daily users. According to TechCrunch, Spiegel wrote a memo to employees separately addressing Stone's resignation.
“Tim has made a big impact in his short time on our team and we are very grateful for all of his hard work,” said Spiegel. “I know we have all benefitted from his customer focus and the way he has encouraged all of us to operate as owners.”