Peloton CFO Jill Woodworth to step down
Woodworth will be succeeded by Amazon veteran Elizabeth Coddington
Peloton Chief Financial Officer Jill Woodworth is stepping down from her role after serving at the fitness equipment giant since 2018.
According to a filing with the Securities and Exchange Commission, Woodworth will provide consulting services on an interim basis through Sept. 13, 2022, and support the company in preparation for its fiscal year 2022 earnings report.
During her time as a consultant, Woodworth will receive $62,500 per month. She will also continue to receive her base salary of $750,000 and be eligible to vest any outstanding equity awards, subject to her continued compliance with customary restrictive covenants and her timely execution of a release of claims. Following the end of the consulting period, Woodworth will be eligible for severance.
Peloton Chief Financial Officer Jill Woodworth will provide consulting services on an interim basis through Sept. 13, 2022 and support Peloton in preparation for its fiscal year 2022 earnings report. (Peloton)
"I would like to thank Jill for four years of dedicated service," Peloton CEO Barry McCarthy said in a statement. "She scaled the global finance function through an extraordinary period, led the company through its IPO, and has been an integral member of the leadership team. We wish Jill well in the next phase of her career and are grateful for all her contributions."
The filing emphasizes that her departure is not the result of any disagreement with the company.
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Woodworth will be succeeded by Amazon veteran Elizabeth Coddington.
Coddington joined Amazon in March 2016, rising through the ranks in various finance roles of increasing responsibility at Amazon Web Services. From January 2021 to June 2022, Coddington served as Amazon Web Services' vice president of finance. Prior to Amazon, Coddington served as the chief financial officer of Adara Inc., the vice president of finance and chief financial officer of Walmart.com and vice president of financial planning and analysis at Netflix.
Amazon veteran Liz Coddington will succeed Peloton chief financial officer Jill Woodworth (Peloton)
Peloton will pay Coddington a starting salary of $1 million per year. She will also receive up to $150,000 in relocation support and will be eligible for an equity award of the company's common stock valued at $9 million.
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Woodworth's departure comes after Peloton has struggled to maintain its growth spurred by the COVID-19 pandemic and is facing pressure from activist investor Blackwells Capital to pursue a sale.
In February, Peloton announced a series of cost-cutting measures expected to deliver at least $800 million of annual run-rate cost savings, including cutting 2,800 jobs. The company expects to deliver roughly $40 million in incremental revenue monthly due to recent price changes for its subscriptions and equipment. In addition to cost-cutting, Peloton signed a commitment letter with JP Morgan and Goldman Sachs to borrow $750 million in five-year term debt to strengthen its balance sheet.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PTON | PELOTON INTERACTIVE INC. | 9.55 | -0.79 | -7.64% |
As of the end of the third quarter of 2022, Peloton has a total of 7 million members. McCarthy has set a goal to increase that member base to 100 million members, equivalent to roughly half of the world's global gym memberships.
In order to reach the goal, McCarthy has said the company would work to broaden its distribution of third party retailers, raise awareness around its digital app, expand into more international markets and continue to test and broaden the roll-out of its Fitness-as-a-Service rental program, which combines the cost of its connected fitness hardware and All-Access subscription service into one low monthly fee.
Peloton stock has fallen more than 60% year-to-date as of the time of publication.