A Look at PayPal President's Compensation, Golden Parachute
By Ina Steiner
eBay's new President of PayPal David Marcus will receive an annual base salary of $620,000, which is less than eBay Global Marketplaces President Devin Wenig's salary of $750,000. eBay CEO John Donahoe said he put Marcus in the top spot at PayPal to give it some "start-up energy."
In addition to his salary, Marcus will be eligible to participate in the eBay Incentive Plan, with a target annual bonus of 100% of his base salary. eBay's Board of Directors also granted him options to purchase 54,005 shares of eBay common stock, along with 45,005 performance-based restricted stock units and 117,012 restricted stock units.
eBay also gave Marcus a "golden parachute." If he is terminated without cause, he is entitled to the following severance arrangements:
- If the termination occurs prior to April 2, 2014, the Company will provide a payment equal to two times the sum of (a) Mr. Marcus' annual base salary in effect immediately prior to his termination date and (b) a bonus replacement amount equal to 100% of his base salary as in effect immediately prior to his termination date. (In other words, if eBay lets him go tomorrow, he would walk away with $1.86 million.)
- If the termination occurs on or after April 2, 2014, Mr. Marcus will be treated in a manner consistent with similarly situated executives.
About the author:
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to email@example.com.
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