- Peloton CEO John Foley earned $17.8 million in total compensation, including stock awards, in 2021
- He appeared on the Forbes billionaires list in April 2021 with a net worth of $1.5 billion
- His net worth reportedly shrunk to around $850 million in November last year as Peloton shares struggled
Peloton founder and CEO John Foley saw his total pay increase significantly in 2021 compared to the previous year, according to reports.
Foley earned $17.8 million in total compensation in Peloton's 2021 fiscal year, Business Insider reported, citing a proxy filing. This amount included stock awards.
This meant Foley saw his pay increase by over 57% from 2020, according to ExecPay News.
On the other hand, the median Peloton employee, including both hourly and full-time employees, was paid an annual salary of $56,084 last year, according to the filing. This meant the pay ratio between the CEO and the median employee was 317 to 1.
During the height of the pandemic, Peloton, which sells bikes and treadmills paired with monthly subscriptions for at-home workouts, saw incredible growth, with sales surging 250% in the first quarter of 2020, according to Forbes. However, the business took a hit from the reopening of the economy last year as consumers were heading back to gyms.
Foley appeared on the Forbes billionaires list in April 2021 with a net worth of $1.5 billion, but by November, his net worth had shrunk to around $850 million as shares of Peloton struggled.
At the time, it was reported that Peloton’s stock was down nearly 34%, to around $57 per share—its lowest point since June 2020.
The company slashed its revenue forecast for fiscal 2022 by as much as $1 billion and lowered its projections for subscribers and profit margins, Fortune reported.
This came months after Peloton shares initially plunged in May 2021 after the company recalled its Peloton Tread+ and Peloton Tread treadmills, citing safety hazards, CBS News reported.
More than 70 incidents involving the equipment were reported, including the death of one child and instances where users sustained injuries such as broken bones and cuts were reported.
A month before the recall, the U.S. Consumer Product Safety Commission warned households with children and pets to immediately stop using the exercise equipment. Peloton also previously cautioned the public to keep children and pets away from its treadmills.
Foley, a graduate of Harvard Business School, started Peloton in 2019. His wife, Jill, now runs the company's apparel division.
Prior to starting the exercise equipment company, Foley had previously been an executive at both Mars Inc. and Barnes and Noble's e-commerce division, according to the Peloton website.