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The news came a few days ago that the Contextlogic (WISH) CFO is retiring. It came quickly and unexpectedly.
There’s probably a reason why they got rid of him so quickly.
What Is a Restricted Stock Unit (RSU)?
A restricted stock unit (RSU) is a form of compensation issued by an employer to an employee in the form of company shares. Restricted stock units are issued to an employee through a vesting plan and distribution schedule after achieving required performance milestones or upon remaining with their employer for a particular length of time.
RSUs give an employee interest in company stock but they have no tangible value until vesting is complete. The restricted stock units are assigned a fair market value when they vest. Upon vesting, they are considered income, and a portion of the shares is withheld to pay income taxes. The employee receives the remaining shares and can sell them at their discretion.
So now bull or bear news?
In short: both
- There was a CFO in position who caused damage. Employee motivation decreased.
- The reorganization has begun at a higher level
- Jacqueline Reses can really make the company a success
Who is Jacqueline Reses?
Reses began her career at Goldman Sachs, working in the mergers and acquisitions department and later as an investor in the principal investments area between 1992 and 1999. Later she served as CEO for iBuilding, Inc., a real estate software business.
After iBuilding’s sale to Realeum Software in 2001, Reses joined Apax Partners, a private equity firm with headquarters in London, England, where she founded the firm’s U.S. media group. At Apax, Reses served on the boards of Cengage Learning, Intelsat, HIT Entertainment and NEP Broadcasting.
In 2012, Reses joined Yahoo! as Executive Vice President of people and development, leading hiring and HR for the company. That same year, she was appointed to the board of directors of the Alibaba Group, where she helped lead Alibaba’s IPO in September 2014 As Chief Development Officer at Yahoo !, reses lead forty-one transactions between 2012 and 2014.
In October 2015, Reses joined Square, Inc. to head Square Capital, the company’s start-up small-business lending program. Jacqueline Reses is currently the executive chairman of Wish.
The above writing does not constitute financial advice. I have a long position in Wish at an average price of 8.65.