PayPal Stock Surge Triggers $31.3 Million Payout to CEO Dan Schulman
velocity of e-commerce and digital payments last
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PayPal. Holdings Inc. granted Chief Executive. Dan Schulman. business shares worth$ 31.3 million this week, a sum that exceeds his yearly compensation most years, after the business’s stock rate increased during the coronavirus pandemic. The run-up in the financial-technology business’s stock triggered the pay out of one-third of a special performance-based share package Mr. Schulman was approved in 2018, according to a securities filing late Friday and a PayPal spokeswoman.
San Jose, Calif.-based PayPal was among the recipients of the acceleration of e-commerce and digital payments in 2015, with the variety of active PayPal accounts increasing 24% to 377 million and the total volume of payments processed on its platform in 2020 expanding 31% to $936 billion.
PayPal published record revenue and earnings on the back of those patterns. Over the previous 12 months, its shares more than doubled in rate to $247.54, offering PayPal a larger market worth than a lot of U.S. banks.
Mr. Schulman’s stock award, the totality of which was provided a reasonable worth of $16 million when it was given in April 2018, was slated to start vesting this month if the company’s typical share price over 90 days surpassed specific thresholds, the highest of which was set at $125. The 2nd and final parts of the award can vest in April 2022 and April 2023, respectively. Mr. Schulman is generally required not to sell these shares up until 2023.
For 2019, the most current year for which PayPal has revealed executives’ settlement, Mr. Schulman earned $25.8 million, or about 80% of what he received on Friday.
Investor advocates slammed PayPal’s decision to offer Mr. Schulman the unique stock award in 2018. Proxy-advisory firm Glass Lewis & & Co. suggested that investors vote versus PayPal’s executive settlement proposal that year due to the fact that of “concerning pay practices.” Around 55% of investors approved the award.
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