Peloton Interactive Inc. is parting with two of its top lawyers as the home fitness company shakes up its executive ranks.
Longtime chief legal officer and co-founder Hisao Kushi will exit the struggling company next month. Former Peloton head of compliance and risk Bertrand “Lance” Lanciault III has also left to take a similar role at Snap Inc., the parent company of social media service Snapchat.
Kushi is leaving along with Peloton executive chairman and co-founder John Foley. He will be replaced as Peloton’s top lawyer on Oct. 3 by Tammy Albarrán, chief deputy general counsel at Uber Technologies Inc. Peloton and Kushi didn’t respond to requests for comment about Lanciault’s replacement.
New York-based Peloton said in mid-August it would cut nearly 800 jobs, hike prices, and shut stores in a sweeping overhaul of its business.
Lanciault joined Peloton last year, after stints as legal chief at StubHub Inc. and chief ethics and compliance officer for Walmart Inc.’s e-commerce arm. He didn’t respond to a request for comment about his job switch to Snap, which is listed on Lanciault’s LinkedIn profile and registration with the State Bar of California and was confirmed by a source familiar with Peloton’s operations.
His move was first noted by corporate compliance website Radical Compliance.
Snap Mass Layoffs
Snap, like Peloton, is also restructuring its operations.
The company announced Aug. 31 it would lay off 20% of its workforce—an estimated 1,200 employees—as two top executives jumped to Netflix. The reduction in force included some newly hired attorneys at Snap, according to trade publication Corporate Counsel.
Lanciault took to LinkedIn this month to tout the “many contributions” by some employees swept up in the layoffs at the Santa Monica, Calif.-based company.
Snap and its general counsel, Michael O’Sullivan, didn’t respond to requests for comment about Lanciault’s hire. The company parted ways earlier this year with deputy general counsel and former compliance chief Dominic Perella, a one-time appellate litigation partner at Hogan Lovells who left Snap to take a sabbatical.
New Peloton Regime
Albarrán, Peloton’s new top lawyer, is a former partner at Covington & Burling. She joined Uber in 2018 after taking a key role on an internal investigation into sexual harassment at the company.
An Uber spokeswoman said that Albarrán will remain with the ride-sharing giant through month’s end as the San Francisco-based company finalizes plans to transition her duties. Uber legal chief Tony West said in a statement that he’s known and worked with Albarrán for more than 20 years.
“Tammy is really exceptional when it comes to seeing the big picture and problem solving,” West said. “Her excellent judgment and tireless work ethic will serve her well in this new role, and Peloton’s extremely fortunate to have landed her.”
Albarrán said in a statement that she’s “proud of the transformational changes” she and West have made at Uber and is looking forward to her next challenge at Peloton.
“I’ve been an avid Peloton member for years, and my experience with the brand has deeply influenced and shaped my perspectives on community and fitness,” she said. Albarrán added she was drawn to the “opportunity to make a difference” as Peloton’s top lawyer under the leadership of Barry McCarthy, its new chief executive.
Michael Del Negro, an attorney hired by Peloton in January as its head of product safety compliance, didn’t respond to a request for comment about his role at the company. Peloton is coping with regulatory inquiries related to its exercise equipment.
Bloomberg News reported earlier this year that cutbacks at Peloton have spared the company’s well-compensated instructors led by fitness programming head Robin Arzón, a former litigation associate at Paul Hastings.
The top legal roles at Peloton and Snap have historically been among the most profitable for lawyers in the in-house arena.
Securities filings show that O’Sullivan, Snap’s legal chief since 2017, has sold off nearly $4.9 million in company stock so far this year. O’Sullivan currently owns Snap shares valued at more than $12 million, according to Bloomberg data.
O’Sullivan’s pay, however, has slipped at Snap in recent years. It fell from roughly $9.1 million in 2019 to $7.7 million in 2020 and $5.4 million last year, per proxy statements filed by the company.
Kushi reaped the benefits of Peloton’s soaring stock price during the pandemic after helping take the company public in 2019. He reportedly sold off almost $93 million in Peloton shares during 2020 and 2021.
Bloomberg data shows that Kushi currently owns roughly $17,000 in company stock. He hasn’t sold off any Peloton shares this year, according to securities filings.