PayPal Holdings Inc. cut the compensation of outgoing CEO Dan Schulman by 32%, to $22 millions last year. The company had failed to achieve its financial targets.
According to a Securities and Exchange Commission filing, Schulman received $20.2 million as stock-based compensation in 2022. He also earned a salary of $1.3million and another $212,692 for other compensation that included personal security. PayPal, based in San Jose, awarded Schulman a total compensation of $23.4 million and $32.1 million for 2021.
According to its SEC filing, the online payment company did not meet its revenue targets last year, but it exceeded its goals for free cash flow. The board of directors reduced Schulman’s stock compensation goal for 2022 to $24 millions last year, from $27million in 2021. This was due to the overall market conditions and company's performance.
According to the filing, Schulman's compensation was 284% higher than the average PayPal employee's $77,244 salary.
The news of Schulman’s pay cut coincides with a company-wide effort to reduce costs. PayPal announced in January that it would be laying off 7% its employees due to the worsening economy. These cuts included approximately 300 employees at the San Jose headquarters.
PayPal is one Silicon Valley's biggest employers. Business Journal research conducted last year shows that before the company made its job cuts, 3,868 people worked in the area. According to PayPal's latest annual report, the company employed 29,900 people worldwide.
Schulman announced his retirement plans in February. The veteran executive assumed control of the payments giant, before its spin-off by eBay Inc. in 2015. PayPal said that it would hire a team to search for his successor.