Dan Schulman, the CEO of PayPal, is leaving his job and taking a pay cut of almost one-third for how well the company did last year. Schulman’s 2022 salary fell 32% to $22m after missing board committee financial benchmarks, according to an SEC filing.
Over $20 million of his pay comes from stock bonuses. In the year before, he made $32 million as an executive.
Schulman was penalised for missing revenue, profitability, and new active user targets set by the PayPal board’s pay committee.
Last year, revenue fell short of $28.8bn. The non-GAAP operating margin was 21.3%, which was lower than the minimum level of 22%. And net new active users fewer than 9m compared to 18m for a 200 percent payout.
Schulman led the Company through a challenging period of macroeconomic uncertainty, geopolitical instability, slowing e-commerce growth and a return to pre-pandemic consumer behaviors, according to PayPal.
Last year, more than two-thirds of PayPal’s stock was cut. So far in 2023, PYPL stock has gained almost 3%.
Shareholders vote on CEO compensation at PayPal’s 2023 annual meeting in May. Investors will also affect discriminating behaviour concerns. PayPal tried to remove this issue from a shareholder vote.
PayPal asked the SEC in early 2023 to approve its decision to remove a proxy proposal on how it tackles discriminatory risks against individuals. The Proposal transcends ordinary business matters, the regulator said, disagreeing with PayPal.
The National Centre for Public Policy Research wants PayPal to be more transparent about how it manages race, colour, religion, and other discriminatory concerns. In its proposal, the US think tank asks PayPal to look into this issue and share a report on what it finds within a year.
Schulman, who had worked for PayPal for almost 10 years, said in February that he wanted to leave the company. The board is looking for someone to take Schulman’s place. After resigning as CEO, Schulman will stay on the board.
