CEO Alex Chriss, who took the helm in February, is focusing on restructuring PayPal after a potential acquisition by Stripe and Advent International failed. The bidders offered $60.50 per share during the summer, but negotiations collapsed over pricing. PayPal shares have since declined to approximately $53, down from a peak exceeding $62.
The turnaround strategy involves cutting costs by billions and revitalizing core products. Chriss aims to transform Venmo from a low-margin application into a comprehensive financial management platform featuring budgeting and investment tools. Additionally, the company is prioritizing the development of its checkout button to better compete with Apple Pay and Google Wallet.
The company's roadmap also includes expanding Venmo’s cryptocurrency trading capabilities and promoting the PYUSD stablecoin. These initiatives are intended to help PayPal compete with rivals such as Cash App, Robinhood, and Chime, which have already integrated banking features. Analysts remain divided on the effectiveness of these measures.
Chriss’s compensation package is tied to the company's stock performance. He is eligible for a $25 million bonus if the stock price averages above $68 for 60 days. Furthermore, he could receive over $60 million if the share price reaches $125.
