Zip founders depart for divisional postings as new CEO appointed
Zip has appointed Cynthia Scott as its new chief executive, with co-founder Peter Gray moving to head the buy now, pay later group’s Australian and New Zealand division.
Ms Scott, who was previously a chief executive of Barclays’ Australasian division, steps up from her role running Zip Australia to take the top job. The executive change comes amid a broader restructure of the company, where shares have reached $12.35 and a market capitalisation of $6 billion.
The collapse of its merger with Sezzle and increasing scepticism from investors about its profitability, have pushed shares lower since.
They were trading at 42¢ on Thursday, giving it a market capitalisation of around $338 million.
The company has moved away from its global ambitions to focus on the United States and Australian business, winding down its Middle Eastern division and selling the European and South African businesses for $20 million. Its Australian rival, Afterpay, is also exiting certain markets, its owner Block told analysts last week.
Mr Gray – who helped create the fast-growing finance company in 2013 alongside Larry Diamond, who moved to the US in October – will shift from the chief operation officer role to run the Australian division.
Ms Scott will join the board while Mr Gray will act as board adviser. Mr Diamond remains on the board. The board, chaired by Diane Smith-Gander, has agreed to pay Ms Scott a fixed salary of $737,399. She is eligible to earn a short-term bonus of 100 per cent of that amount, while a long-term incentive plan may entitle her to 150 per cent of her salary via performance share rights.
One of Zip’s priorities has been to repair its capital structure after it raised hundreds of millions of dollars of convertible notes
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