Spotify Technology S.A. announced a major leadership transition as founder Daniel Ek has stepped down as Chief Executive Officer (CEO).
The announcement was made on Tuesday, September 30, confirming that Daniel's role has been shifted to executive chairman for strategy and capital allocation.
The switch of roles will be effective as of January 1, 2026, with the adopting of a Co-CEO model.
The Co-CEO of the company will be long-time executives Gustav Söderström and Alex Norström.
The step, which legalizes a management structure that has been active since 2023, is a major change in the company Ek has developed since 2023, out of a Swedish startup into an audio powerhouse worldwide.
Ek, who co-founded Spotify in 2006, will now focus on long-term strategy, capital allocation and regulatory issues.
In reference to the transition, Ek said: “This change is nothing beyond giving titles to what we already do.”
He added that his new position was more hands-on position than an ordinary American chairman.
The news indirectly caused the U.S.-listed shares of Spotify to fall about 5% on Tuesday, September 30, despite the stock having risen 63% in 2021.
In 2024, the company become the first to record an annual profit, following several years of intensive growth in podcasts and audiobooks.
Söderström (Chief Product and Technology Officer) and Norström (Chief Business Officer) have both been at Spotify for more than 15 years.
Since 2023, they have been the co-presidents and have been responsible for the strategic and operational implementation of the company.
In their joint statement, the new co-CEOs announced: “We've worked together a very long time and have seen Spotify through many different chapters... While we bring different experiences and perspectives to the CEO role, we both have a strong bias to action.”
Spotify is facing stiff competition with its mearly 700 million monthly users, which explains the leadership change given the competition posed by other companies such as Apple Music, YouTube Music, and Amazon Music.
The company is also encountering constant pressure to pay artists more, as well as the recent scandal about Ek himself making personal investments in AI defense.
Business experts have given mixed reviews on the new structure. While some admired the strategic seamless transition, others questioned the need for an executive chairman and two CEOs.
