PayPal Holdings Inc. announces their new chief executive, Alex Chriss, set to take the reins of the digital payments giant on September 27. Chriss, who has spent nearly two decades at Intuit Inc., will succeed Dan Schulman, the outgoing CEO, who guided PayPal through its journey as a standalone company after separating from eBay Inc. in 2015.
Meet Alex Chriss: Five Things to Know
- Led Intuit’s Small-Business and Self-Employed Group
With a wealth of experience at Intuit, Chriss most recently served as the executive vice president and general manager for the company’s small-business and self-employed group. This segment alone accounts for over half of Intuit’s total revenue. Under Chriss’s leadership, the small-business unit achieved an impressive 23% compound annual revenue growth.
- Strong Alignment with PayPal’s Focus Area
Chriss’s extensive experience with small- and medium-sized businesses aligns perfectly with PayPal’s specific focus area. Furthermore, RBC Capital Markets analyst Daniel Perlin stated that Chriss’s expertise will be a valuable asset for PayPal.
- Expertise in Mergers and Acquisitions (M&A)
PayPal acknowledges Chriss’s pivotal role in Intuit’s successful $12 billion acquisition of Mailchimp. This M&A deal significantly expanded Intuit’s platform capabilities and customer base. The ability to effectively acquire and integrate assets has been a concern for investors in PayPal, making Chriss’s experience particularly noteworthy.
- Positive Industry Outlook
Industry experts have responded positively to Chriss’s appointment as CEO. Wolfe Research analyst Darrin Peller emphasized the significance of Chriss’s M&A expertise and expressed confidence in his ability to lead PayPal to future success.
This new chapter marks an exciting phase for PayPal as it entrusts its leadership to Alex Chriss, who brings a wealth of experience and a track record of driving growth. As PayPal continues to evolve as a leading digital payments provider, Chriss’s appointment is seen as a strategic move to further strengthen the company’s position in the market.
PayPal Undergoes Executive Changes
PayPal, the online payment giant, is experiencing shifts within its executive team. While the company recently welcomed a new CEO, it still needs to fill other crucial positions to ensure stability and growth. The search for a permanent chief financial officer is underway after Blake Jorgensen resigned last September due to health reasons. In the interim, Gabrielle Rabinovitch, the senior vice president of investor relations, has taken on the role of acting CFO.
Additionally, Jonathan Auerbach, the chief strategy, growth, and data officer, will be leaving by the end of this year. Although his departure is imminent, Auerbach will continue in an advisory capacity for the next five months. Meanwhile, John Kim, who joined PayPal in September of last year, serves as the company’s chief product officer.
Stability in Leadership Removes Uncertainty
The uncertainty surrounding PayPal’s leadership has had an impact on its stock performance. Since CEO Dan Schulman announced his retirement plans in February, investors have been eagerly awaiting news about his successor. This prolonged period of uncertainty has placed pressure on PayPal’s shares.
Peller, an analyst, mentions that PayPal’s CEO search has been a notable concern for the company’s stock over the past six months. Many long-term investors have been waiting for an official announcement before making any decisions regarding their involvement with the company. However, the appointment of an external candidate is expected to alleviate some of these concerns.
According to Barclays analyst Ramsey El-Assal, the selection of a new CEO has been a prerequisite for many investors considering a partnership with PayPal. The appointment of a capable leader will instill confidence and potentially attract more investors.
Rebuilding Investor Confidence
PayPal’s stock has experienced a significant decline of nearly 80% since reaching its all-time high in July 2021. At that time, the company was capitalizing on the stay-at-home economy created by the pandemic. To regain the trust and support of Wall Street, the new CEO will face the task of revitalizing PayPal’s performance.
Amidst these executive changes, PayPal remains driven to solidify its position as a leading player in the online payment industry. With a strategic and capable leadership team in place, the company aims to overcome current challenges and achieve future success.
PayPal’s Market Share at Risk Amid Apple Pay’s Surge
The year has been challenging for PayPal, as its stock has plummeted by 11%. The primary concern for investors has been the rise of Apple Pay and its potential impact on PayPal’s market share.
Within PayPal itself, Wall Street has also been worried about margin pressure. This is due to the company’s lower-margin unbranded processing business growing more rapidly than its branded checkout services.
It is crucial for PayPal to address these issues promptly in order to regain investor confidence and protect its dominant position in the digital payment industry.
