Schulman is set to retire by the end of the year as he announced back in February.
American multinational financial services and payments firm PayPal Holdings Inc. (NASDAQ:PYPL) has slashed the cash remuneration of its chief executive officer (CEO) Dan Schulman, in a rare cost-cutting move. According to a filing by the company, Schulman was paid a total of $22 million for the year, down 32% from the $32 million he received from the firm the previous year.
The reduction in Schulman’s remuneration comes as a result of the company’s poor performance in the last fiscal year. PayPal was notably unable to meet its targets for the year amid the growing impact of the ongoing war in Ukraine on the global financial ecosystem.
Specifically, the company’s key targets for revenue, adjusted operating margin, and net new active users weren’t met, which also translates to lower profits across the board. The reduced remuneration for Dan Schulman is one cost-cutting measure the company hopes to use to cushion its balance sheet.
Despite Schulman’s pay cut, the compensation committee of the PayPal board still believes that Experienced CEOs are the best person to lead a company through its most difficult times. The committee tipped Schulman to lead the firm “through a challenging period of macroeconomic uncertainty, geopolitical instability, slowing e-commerce growth, and a return to pre-pandemic consumer behaviors.”
Extremely high inflation all over the world and especially in the United States of America has reduced the earning capabilities of the citizens to a great extent and also led to a sharp decline in their spending powers. This affected the company’s revenue due to payment receipt and default from merchants hosted on the PayPal platform.
PayPal CEO exit and other tough battles
Shulman is set to retire By the end of the year as he had announced in February. Still on top of matters, PayPal said it was willing to contract the job of finding his replacement to a third-party firm.
In addition to the core need to steer PayPal away from its slow growth path, the company is also fighting some tough battles, particularly as it pertains to encroachment on its shareholders’ decisions.
Ahead of its shareholder meeting in May, the company is urging investors to vote against major proposals that tend to shift key landmarks in operations the company has already determined.
One of these motions would be to compel the company to reveal its approach to account suspension and closure. The offer is being sponsored in part because there have been claims that the company bans sex workers from its app, even those who ply their trade legitimately.
“PayPal consistently employs purposeful, narrowly tailored policies to address account suspensions and closures, and these policies are designed to ensure the safety of our customers and protect PayPal’s legitimate business interests,” the company said in a statement. based on doing.” Proposal.
Benjamin Godfrey is a blockchain enthusiast and journalist who loves to write about real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies drives his contributions to well-known blockchain-based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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