8-KLeadership Changes

PayPal Holdings, Inc. 8-K Report, Executive Changes (Aug 8, 2023)

Filed August 8, 2023For Securities:PYPL

Summary

PayPal Holdings, Inc. has filed an 8-K report on August 7, 2023, to announce the departure of Jonathan Auerbach, Executive Vice President, Chief Strategy, Growth and Data Officer. Mr. Auerbach will transition out of his role on December 31, 2023, and will remain with the company as an advisor until June 1, 2024. The company emphasizes that this departure is not due to any dispute or disagreement, and Mr. Auerbach's compensation will remain unchanged during his advisory period. This filing details the terms of Mr. Auerbach's separation agreement, which aligns with the company's existing Executive Change in Control and Severance Plan. The agreement provides for severance pay, health benefits, specific equity award treatment, and outplacement services, all consistent with a 'Qualifying Termination' as defined in the plan. Investors should note that the departure of a key strategy executive could signal potential shifts in strategic direction, although the company has not indicated any such changes.

Key Highlights

  • 1Jonathan Auerbach, EVP, Chief Strategy, Growth and Data Officer, will depart the company on June 1, 2024.
  • 2Mr. Auerbach will cease his executive role on December 31, 2023.
  • 3He will serve as an advisor to the company until his departure date.
  • 4The departure is stated to be without dispute or disagreement.
  • 5Mr. Auerbach's compensation will remain unchanged during his advisory period.
  • 6The separation terms are in line with PayPal's Executive Change in Control and Severance Plan, qualifying as a 'Qualifying Termination'.
  • 7The separation agreement includes severance pay, health benefits, equity award treatment, and outplacement services.

Frequently Asked Questions

While the filing states Mr. Auerbach's departure is amicable and not due to a dispute, the departure of a Chief Strategy, Growth, and Data Officer could signal potential changes in the company's strategic direction or focus. Investors will likely monitor future announcements for any strategic shifts.

The filing indicates Mr. Auerbach's departure will follow the terms of the company's existing severance plan. This means the financial impact is largely pre-determined and accounted for within the company's existing policies for executive departures. Specific financial details of the severance package are not disclosed beyond referencing the plan.

Mr. Auerbach will continue in his role as Executive Vice President, Chief Strategy, Growth and Data Officer until December 31, 2023. Following this, he will transition to an advisory role until his final departure on June 1, 2024, providing a transition period.