Dan Schulman, CEO of Paypal, attends the annual Allen and Co. Sun Valley media convention in Sun Valley, Idaho, July 10, 2019.
Gerard Miller | CNBC
PayPal mentioned on Thursday that CEO Dan Schulman will retire and depart the web funds firm on the finish of 2023.
Schulman, who grew to become PayPal CEO after the break up from eBay in 2015, notified the corporate of his determination to retire on the finish of December. He will stay a member of PayPal’s board of administrators, which is hiring a search agency to discover a successor.
“I’m proud of what we have accomplished at PayPal and of the incredibly talented and committed people I work with every day,” Schulman mentioned in an announcement. “Together, we have reimagined financial services and e-commerce, and worked to improve the financial health of our customers.”
PayPal shares jumped by about 130% for the reason that 2015 spinoff. But the corporate has misplaced roughly three-quarters of its worth for the reason that inventory’s peak in July 2021.
In late January, PayPal mentioned it will lay off 2,000 staff, which equates to 7% of the corporate’s workforce. Schulman mentioned in an announcement on the time that PayPal was addressing the “challenging macroeconomic environment.”
Last summer season, activist investor Elliott Management collected an undisclosed stake in PayPal.
In an interview with CNBC’s Kate Rooney on Thursday, Schulman mentioned he did not expertise any stress from Elliott.
“We actually really haven’t spoken much this past quarter,” Schulman mentioned.
“Jesse and I are good friends,” he mentioned, referring to Elliott Management managing associate Jesse Cohn. “He’s been incredibly supportive and I’m sure this announcement comes as a real surprise and shock because he’s been so supportive.”
Schulman added that PayPal’s “board just wants to find the very best candidate,” and mentioned it’s “going to look across the company and externally.”
He mentioned PayPal is “in a good place” and is “in a position to deliver a strong year,” including that the board would have sufficient time to discover a successor.
“The timing was right,” Schulman mentioned. “It makes sense.”
PayPal introduced Schulman’s upcoming departure alongside its fourth-quarter earnings report. The firm mentioned web income grew 7% year-over-year to $7.4 billion within the fourth quarter.
The inventory slipped in after-hours buying and selling to $77.99.
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Source: www.cnbc.com”