The company failed to meet the targets set for key metrics including revenue, operating margin and new active customers.
PayPal Holdings Inc has reduced the salary of Chief Executive Officer Dan Schulman by 32 percent to $ 220 million (about Rs 1796 crore) for the last year after failing to meet its financial targets. A committee of the board said the company failed to meet the targets set for key metrics including revenue, operating margin and new active customers. That’s why the salary of the CEO has been cut.
The San Jose, California-based company said in a filing that Schulman was awarded $220 million in compensation for 2022, which included approximately $202 million in stock awards. This is compared to $320 million a year ago. Schulman announced plans to retire at the end of the year in February and the board said it would enlist a research firm to find a successor.
PayPal is struggling with slowing growth across all platforms and a month-long decline in its share price. PayPal shares were little changed in late trading after closing Thursday up 2.8% at $75.52. That helped propel the stock’s gain to 6%, compared to the 5% decline of the 73-company S&P 500 financial index.
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PayPal will have to issue a report
At its annual meeting at the end of next month, shareholders will vote on the board’s proposed salaries for Schulman and other top executives. The Tara Health Foundation urged shareholders to vote in favor of a resolution that would require PayPal to release a report on its work to satisfy requests from law enforcement officials.
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PayPal made this request to the shareholders
PayPal urged shareholders to vote against the proposal. Noting officers “may only obtain customer information pursuant to appropriate legal service and the validity of each demand is thoroughly assessed before sharing any information. Another motion would compel the company to explain the decision-making process behind account suspensions and closures, noting that the company has been accused of restricting legal personnel’s access to PayPal services.
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