Snap rises after hiring an Amazon veteran as finance chief

Shares of Snap rose 1.5% in early trading Tuesday, breaking a five day losing streak, following the departure of chief financial officer Andrew Vollero and his subsequent replacement by former Amazon executive Tim Stone.

Vollero joined Snapchat’s parent company in August of 2015, according to his LinkedIn profile, following a 10-year stint at Mattel as senior VP of corporate strategy, development, and investor relations.

“I am deeply grateful for Drew and his many contributions to the growth of Snap,” Evan Spiegel, Snap’s CEO, said in a regulatory filing announcing the leadership shakeup.”He has done an amazing job as Snap’s first CFO, building a strong team and helping to guide us through our transition to becoming a public company. The discipline that he has brought to our business will serve us well into the future. We wish Drew continued success and all the best.”

Stone, who has worked at Amazon since 1998, will start on May 16 with an annual salary of $US500,000 plus a $US20 million bonus of restricted stock and 500,000 options to purchase more shares. His predecessor Vollero was making $US300,000 per year with a $US200,000 bonus, according to regulatory filings.

Vollero’s departure comes after a turbulent year for Snap since going public in March 2017. It has faced sustained pressure from Facebook, and after it announced it failed to meet analysts’ expectations for Q1 2018, its stock cratered as much as 17%.

The stock is now down 55% since its IPO.

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