Platoon compliance chief Lanciault jumps for Snapchat role
Peloton Interactive Inc. is parting ways 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 leave the struggling company next month. The Peloton’s former chief compliance and risk officer, Bertrand “Lance” Lanciault III, also left to take up a similar role at Snap Inc., the parent company of social media service Snapchat.
Kushi leaves with Executive Chairman and Peloton Co-Founder John Foley. He will be replaced as Peloton’s top lawyer on Oct. 3 by Tammy Albarrán, chief assistant general counsel at Uber Technologies Inc. Peloton and Kushi did not respond to requests for comment on Lanciault’s replacement.
New York-based Peloton said in mid-August it would cut nearly 800 jobs, raise prices and close stores as part of a sweeping overhaul of its business.
Lanciault joined Peloton last year, having served as chief legal officer at StubHub Inc. and chief ethics and compliance officer for the e-commerce arm of Walmart Inc. He did not respond to a request for comment on his job change to Snap, which is listed on Lanciault’s LinkedIn profile and his California state bar registration and was confirmed by a source familiar with Peloton’s operations.
His gesture was noted for the first time by the Radical Compliance corporate compliance website.
Instant mass layoffs
Snap, like Peloton, is also restructuring its operations.
The company announced on August 31 that it dismiss 20% of its workforce – approximately 1,200 employees – as two senior executives jumped up to Netflix. The reduction in strength included some newly hired lawyers at Snap, according to trade publication Corporate Counsel.
Lanciault took LinkedIn this month to tout the “many contributions” of some employees swept away by layoffs from the Santa Monica, Calif.-based company.
Snap and its general counsel, Michael O’Sullivan, did not respond to requests for comment on Lanciault’s hiring. The company separate ways earlier this year with Assistant General Counsel and former Chief Compliance Officer Dominic Perella, a former appellate litigation partner at Hogan Lovells who left Snap to take a sabbatical.
New platoon regime
Albarrán, Peloton’s new attorney, is a former partner at Covington & Burling. She joined Uber in 2018 after play a key role on an internal investigation for sexual harassment within the company.
An Uber spokeswoman said Albarrán will stay with the ride-sharing giant until the end of the month as the San Francisco-based company finalizes plans to transition his role. Uber’s chief legal officer, Tony West, said in a statement that he has known and worked with Albarrán for more than 20 years.
“Tammy is truly exceptional when it comes to seeing the big picture and solving problems,” West said. “Her excellent judgment and tireless work ethic will stand her in good stead in this new role, and Peloton is extremely lucky to have landed her.”
Albarrán said in a statement that she is “proud of the transformational changes” she and West have brought to Uber and looks forward to her next challenge at Peloton.
“I’ve been an avid Peloton member for years, and my experience with the brand has profoundly influenced and shaped my outlook on community and fitness,” she said. Albarrán added that she was attracted to “the opportunity to make a difference” as Peloton’s top lawyer under Barry McCarthy, its new chief executive.
Michael Del Negro, an attorney hired by Peloton in January as its product safety compliance officer, did not respond to a request for comment on his role at the company. Peloton is facing regulatory inquiries related to its exercise equipment.
Bloomberg News reported earlier this year that cutbacks at Peloton have spared the company’s well-paid instructors led by the head of fitness programming Robin Arzonformer litigation partner at Paul Hastings.
Senior legal roles at Peloton and Snap have historically been among the most profitable for lawyers in the in-house field.
Securities filings show that O’Sullivan, Snap’s chief legal officer since 2017, has sold nearly $4.9 million of the company’s stock so far this year. O’Sullivan currently owns Snap shares valued at more than $12 million, according to Bloomberg data.
O’Sullivan’s salary has dropped at Snap in recent years, however. It went from about $9.1 million in 2019 to $7.7 million in 2020 and $5.4 million last year, according to proxy statements filed by the company.
Bloomberg data shows Kushi currently owns about $17,000 in the company’s stock. He has not sold any shares of Peloton this year, according to securities filings.