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Snowflake CEO Frank Slootman's decision to step down from his position sent shockwaves through the market, causing an 18% decline in the company's stock price on Thursday, its most significant drop since its debut on the New York Stock Exchange in 2020.

Frank Slootman Steps Down as Snowflake CEO

According to CNBC, the announcement of Frank Slootman's departure late Wednesday came alongside Snowflake's quarterly earnings report, which also included disappointing financial forecasts.

Analysts at Mizuho Securities observed that investors were rattled by Slootman's resignation, considering his instrumental role in guiding the company since he joined in 2019.

He also led the firm through its blockbuster initial public offering (IPO) the following year. Despite concerns among investors, Slootman told CNBC that his departure would not trigger a mass exodus of Snowflake employees. He emphasized that the company's success is not solely dependent on any individual, and no one is expected to follow him out the door.

Who Will Replace Frank Slootman?

Taking Frank Slootman's place is Sridhar Ramaswamy, the former head of Google's advertising business, who joined Snowflake after the company acquired Neeva, an AI-powered search engine startup that Ramaswamy co-founded.

Ramaswamy's appointment signifies a leadership transition for Snowflake, with investors expected to keenly observe how he will steer the company in the future.

Slootman's tenure was pivotal in navigating Snowflake through its IPO journey, which was also a financial success for him, given his significant ownership stake in the company. As of February 9, he owned 10.6 million shares, which is currently worth around $2 billion.