Silberman will be handing over the reins to Google commerce and payment executive Bill Ready, who previously also worked as the executive vice president and chief operating officer at PayPal.
The change in leadership comes at a time when Pinterest is transitioning away from its ad revenue model and is focussing on driving revenue through eCommerce. The company currently has some 430 million active users on its platform.
According to CNBC, Silbermann struggled with delivering on Wall Street’s expectations, both when it came to increasing its user base and revenue growth. He was also challenged with several workforce complaints, two of which came from Black employees who publicly accused the company of discriminating against them.
“In our next chapter, we are focused on helping Pinners buy, try and act on all the great ideas they see,” Silbermann said. “Bill is a great leader for this transition. He is a builder who deeply understands commerce and payments.”
As part of the transition plan, Silbermann will take up the role of executive chairman of the company’s board, while Ready will also take up a seat on the company’s board.
Ready will reportedly receive an annual salary of $400,000. He will also be eligible for a stock option to buy nearly 8.6 million Class A shares.
Pinterest’s stock was up 5% in after-hours trading after the news broke.