eBay Makes Big Changes at the Top

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eBay Inc. (NASDAQ: EBAY) has announced that there will be a big change in the company’s leadership. This is a move that many did not see coming, especially with the stock up about 41% so far in 2019, and shares dipped on Wednesday.

Devin Wenig said that he will be stepping down as president, chief executive officer and a director of the company. As a result, the board of directors has appointed Scott Schenkel, most recently eBay’s senior vice president and chief financial officer, as interim CEO.

The eBay board also said that it will undertake a search to identify the company’s next CEO and will consider internal and external candidates.

eBay reaffirmed its full-year guidance for 2019 of organic FX-neutral revenue growth of 2% to 3% and earnings per share growth of $2.70 to $2.75. Consensus estimates call for $2.75 in EPS and $10.83 billion in revenue for the year.

Thomas Tierney, eBay’s board chair, commented:

Devin has been a tireless advocate for driving improvement in the business, particularly in leading the Company forward after the PayPal spinoff. Indeed, eBay is stronger today than it was four years ago. Notwithstanding this progress, given a number of considerations, both Devin and the Board believe that a new CEO is best for the Company at this time.

Tierney added:

During his 12 years at eBay, Scott has demonstrated that he is a strong and dynamic leader who knows our business inside and out. He has worked closely with our teams across the Company to execute our strategy. We are confident that Scott’s experience at eBay positions him well to lead the Company during this time.

Shares of eBay were last seen down about 2% at $38.78, in a 52-week range of $26.01 to $42.00. The consensus price target is $42.21.

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