PayPal CEO Plans to Step Down -- Good News for Investors?
PayPal Holdings (NASDAQ: PYPL) reported its fourth-quarter earnings results after the market closed Thursday, and the numbers were a bit disappointing. The company missed expectations on payment volume and user growth but met expectations for earnings per share.
However, the most important part of PayPal's earnings report might not be a number at all. Along with the earnings release, PayPal announced that CEO Dan Schulman plans to retire at the end of 2023. Here are the details of Schulman's announcement, the current state of PayPal's business, and what a change in leadership could mean for shareholders.
Dan Schulman became CEO of PayPal upon its spinoff from eBay in 2015 and has been in the top spot ever since. During his tenure (through the end of 2022), PayPal has added 254 million active users, grown its payment volume by more than 370%, and increased its annual free cash flow from less than $2 billion to more than $5 billion. And even though the stock has dramatically underperformed the market in the recent downturn, original shareholders have received a 114% total return under Schulman's leadership, about 11% annualized.
Source Fool.com
