DraftKings Announces New CFO, Park Shifts C-Suite Position

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Jason Park, the chief financial officer who oversaw a reverse takeover by DraftKings into a publicly traded company, will transition out of that role on May 1.

Park will become the chief transformation officer for DraftKings, where he will “lead initiatives to deploy cutting edge technologies to capture additional operating efficiencies as well as oversee the integration of the proposed acquisition of Jackpocket Inc,” according to a release.

Replacing Park will be Alan Ellingson, currently the company’s senior VP of finance and analytics.

Robins details Park’s potential for DraftKings

Part of DraftKings hitting positive EBITDA in the second and fourth quarters of 2023 was because of Park’s “leadership of operational efficiency programs,” according to the release.

CEO Jason Robins detailed what he expects from Park in the new role:

“I have asked Jason Park to take on a new role at DraftKings to address and capture large efficiency opportunities that I expect will generate significant incremental profitability over the coming years. Jason’s unique skill set, based on his accomplishments over the last five years as our chief financial officer and 11 years as a private equity operating partner, will allow us to further improve how we operate.

“In addition, I’m confident he will unlock the benefits of our proposed acquisition of Jackpocket following its closing to strengthen DraftKings’ position in U.S. online gaming. There are also potentially transformational AI applications on the horizon that could change the way businesses operate and serve their customers to create potential long-term advantages.”

Park ‘thrilled’ with new role

Park called Ellingson “perfectly suited” for the CFO position while talking about his next steps.

“I am thrilled to take on this new role which tackles several significant opportunities to improve how we operate and taps into my passion for building great and highly efficient companies,” Park said. “Alan is perfectly suited to seamlessly step into the chief financial officer role as an established company leader with deep credibility across the entire organization.”

More information on Park’s transformation program will be detailed on the Q1 earnings call.

Ellingson ready for expanded role

Ellingson has some big shoes to fill considering the growth seen under Park.

Along with seeing the company grow to more than $3.6 billion in revenue last year from $323 million in 2019, DKNG has grown significantly under Park’s watch. That includes the stock jumping 282% since the beginning of 2023 after closing Monday at $43.52.

“We have built a world class finance organization, and I look forward to expanding my leadership role with the team,” Ellingson said. “In addition, I look forward to working closely with Jason Robins to deliver outstanding financial performance and generate incredible shareholder returns.”

Generous DraftKings compensation package

Ellingson’s annual salary jumps up 27% to $400,000, but that pales in comparison to the rest of his potential compensation as detailed in an SEC filing.

The future CFO is eligible to receive $3 million in stock options that vest over four years, $2 million in performance-based options, an annual cash bonus of 100% of his salary, and an annual equity incentive award with a target value of $2.5 million.

Also outlined in the 8-K is a non-compete agreement between Ellingson and DraftKings.