PayPal Stock Rise Sets Off $31.3 Million Payout to CEO Dan Schulman
velocity of e-commerce and digital payments last
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PayPal. Holdings Inc. granted President. Dan Schulman. business shares worth$ 31.3 million today, a sum that surpasses his yearly settlement most years, after the business’s stock price increased throughout the coronavirus pandemic. The run-up in the financial-technology business’s stock set off the pay 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 one of the recipients of the acceleration of e-commerce and digital payments in 2015, with the number of active PayPal accounts increasing 24% to 377 million and the overall volume of payments processed on its platform in 2020 broadening 31% to $936 billion.
PayPal published record profits and earnings on the back of those patterns. Over the past 12 months, its shares more than doubled in price to $247.54, offering PayPal a larger market price than most U.S. banks.
Mr. Schulman’s stock award, the totality of which was offered a fair worth of $16 million when it was approved in April 2018, was slated to begin vesting this month if the business’s average share price over 90 days went beyond particular limits, the highest of which was set at $125. The second and last portions of the award can vest in April 2022 and April 2023, respectively. Mr. Schulman is usually required not to offer these shares till 2023.
For 2019, the most current year for which PayPal has actually revealed executives’ payment, Mr. Schulman made $25.8 million, or about 80% of what he received on Friday.
Investor supporters slammed PayPal’s choice to offer Mr. Schulman the special stock award in 2018. Proxy-advisory firm Glass Lewis & & Co. recommended that financiers vote against PayPal’s executive payment proposition that year since of “worrying pay practices.” Around 55% of shareholders authorized the award.
Compose to Peter Rudegeair at Peter.Rudegeair@wsj.com!.?.! Published at Fri, 02 Apr 2021 23:11:00 +0000