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The stock price of Peloton (PTON) fell by over 4% today.

Why: Peloton announced changes to its leadership team. The company accepted the resignations of John Foley as Executive Chair and Hisao Kushi as Chief Legal Officer, effective September 12, 2022and October 3, 2022, respectively.

Foley co-founded Peloton in 2012 and is credited with leveraging his tech and business experience to build the company into the largest interactive fitness platform in the world. And having previously been the companys CEO for 10 years, he became Executive Chair in February 2022. He is largely viewed as the pioneer who was the driving, creative force behind todays global connected fitness industry.

The Board appointed Karen Boone as Pelotons Chairperson of the Board. And Boone was first elected to Pelotons Board as Audit Committee Chair in 2019 and subsequently named Lead Independent Director in October 2021. She had previously served as President, Chief Financial and Administrative Officer of Restoration Hardware (RH). During her tenure at RH, Boone led the company through tremendous growth, the transition to its current membership model, as well as through several key financial milestones and transactions.

Hisao Kushi was a co-founder of Peloton and played a key role in the companys growth and global scale. And he has served as the companys Chief Legal Officer since 2015. Over the course of his tenure, Kushi had guided the execution of the companys M&A activities, crafted the novel music license deals which are the backbone of the Member experience, and protected emerging IP that ultimately shapes todays connected fitness industry.

Tammy Albarrn is going to replace Kushi as Chief Legal Officer and Corporate Secretary for Peloton, effective October 3, 2022. And in the new role, Albarrn will manage the Legal, Compliance, and Policy functions. Albarrn is one of the technology industrys most well-regarded legal executives and brings a wealth of experience to the job, having served most recently as Chief Deputy General Counsel and Deputy Corporate Secretary at Uber Technologies. During her time at Uber, Albarrn oversaw Ubers global legal teams and was a driving force behind the companys cultural transformation. Albarrn was also a key champion of the companys diversity, equity, and inclusion efforts. Before Uber, Albarrn was a securities litigation and investigations Partner at Covington & Burling LLP, working alongside former Attorney General Eric Holder. Together, Albarrn and Holder co-authored the high-profile report that resulted in profound changes at Uber.

KEY QUOTES:

We are immensely grateful to John and Hisao for having the vision, ambition, and commitment to turn Peloton into the iconic consumer brand it is today. Not only did they succeed in building a great company, they transformed an entire industry by leveraging fitness and technology. Their impact will resonate long after their departure.

Pelotons incoming Chairperson of the Board Karen Boone

As I reflect on the journey Peloton has been on since we founded it, I am so proud of what we have built together. From day one, the incredible talent weve had on our team and the dedication, hard work, and creativity of every Peloton employee are what got us to where we are today. We founded the company because we wanted to make fitness and wellness convenient, fun, and effective. Because of the work of thousands of people, weve done that.

Peloton co-founder and former Executive Chair John Foley

I would like to offer my gratitude to John and Hisao for their shared vision, dedication, and passion for Peloton. Through their hard work, they have given the world the connected fitness industry and created a platform that empowers each of us to be the best version of ourselves. We are indebted to them for their countless contributions.

Peloton CEO Barry McCarthy

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Peloton (PTON) Stock: Why It Fell Over 4% Today - Pulse 2.0