In early August Hubspot (HUBS) co-founder and CEO Brian Halligan announced that he would be stepping down as CEO and current Chief Customer Officer Yamini Rangan would step into the role.
Ms. Rangan will takeover as HUBS continues its rocket ship ascent post-COVID having returned over 64% (annualized) over the past three years. Much of that has come amongst the remarkable surge in remote working which helped to drive the company's numbers to new heights.
Yamini Rangan Biography
Yamini Rangan is Chief Customer Officer at HubSpot, overseeing the marketing, sales, and services teams. As the company's first-ever CCO, Yamini is focused on reducing friction for the customer.
A tech industry veteran, Yamini has more than 24 years of experience ranging from product marketing, sales, and strategy. Yamini previously served as Chief Customer Officer at Dropbox, where she was responsible for embedding customer focus across the organization. Before Dropbox, she was VP of Sales Strategy and Operations at Workday, where she helped quadruple revenue and scaled the sales organization. At SAP, Yamini held several customer-facing leadership roles in strategy, pre-sales and value-based selling and helped close landmark deals.
She holds a Bachelor’s degree in Electronics Engineering, a Master’s in Computer Engineering, and an MBA from Berkeley. In 2019, Yamini was recognized as one of the Most Influential Women in Business by San Francisco Business Times.
HUBS Stock on a Tear
Hubspot Board and Executive Diversity
Ms. Rangan will join CFO Kathryn Bueker in the c-suite who has been leading HUBS finances for the past ~3 years. She also will have the support of a strong and diverse board. Once Ms. Rangan joins the board, there will be 4 women and 6 men making it one of the more gender balanced boards out there.
Hubspot Say-On-Pay Something to Watch
At this year's Hubspot shareholder meeting the say-on-pay vote passed with ~81% voting in favor. However, that does signal some discontent from shareholders on Hubspot executive compensation and should be watched as Rangan assumes the role.
Both co-founders, Halligan as CEO and Dharmesh Shah as CTO only take $1 in cash salary, but they do receive stock awards and options. In 2020 Hubspot reported Halligan's CEO pay as $3.9M and Shah's as $1.8M.
Hubspot's Classified Board
Hubspot is also one of an increasingly smaller number of companies that continue to have a classified board structure. There are three classes with each class serving a 3-year term following a successful shareholder vote.
In regard to both the say-on-pay and classified board, most investors likely won't concern themselves too much with them until a bout of underperformance comes along.
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(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report.)