Snapchat maker Snap Inc. held the biggest initial public offering ever for a Los Angeles company this week pricing its shares at $17 apiece. The company made its debut on the New York Stock Exchange on Thursday, where it quickly leaped to close at $24.48.
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Emily White left a senior position doing business deals at Instagram to become Snapchat's chief operating officer at the start of 2014.
But a year later, she resigned as it turned out that Chief Executive Evan Spiegel preferred keeping more direct control of operations.
That lesson didn't come cheap. Snapchat maker Snap Inc. recorded nearly $44 million in stock-based compensation expenses during the quarter White and another key figure resigned in 2015, the company disclosed in its stock offering documents. That was more than double Snap's stock-related expense in all of 2016.
The disclosure suggests that White received stock options as part of her employment that were to gradually become available to her to exercise over several years. She resigned before some options had vested, but Snap decided to grant them to her anyway as part of her departure.
The same went for Mike Randall, a former Facebook executive who had spent six months running Snapchat's ad sales team before leaving.
But the bulk of the $44 million is tied to White, according to a source not authorized to speak about the details. It's unclear if White maintains Snap shares, but they would have almost doubled in value since she left.
White, who now serves as a board member of Lululemon and Zayo Group, didn't respond to requests to comment. Snap declined to comment.