The abrupt departure of eBay CEO Devin Wenig last month apparently left its board of directors scrambling. They named an interim successor but without negotiating a compensation package.
Over 2 weeks after naming Scott Schenkel interim CEO, eBay entered into a letter of agreement with the executive who had been the company’s Chief Financial Officer. eBay did likewise with Andrew Cring, who was named interim Chief Financial Officer, taking over for Schenkel.
Schenkel and Cring will receive a monthly performance bonus equal to $125,000 and $70,000, respectively, for each month they serve in their new roles. In addition, they were granted performance-based restricted stock units (PBRSUs) and restricted stock units (RSUs). (That’s on top of their base salaries and other compensation they received in their regular positions.)
No specific reason was given for Wenig’s abrupt departure announced on September 25. The Chairman of the Board for eBay stated: “given a number of considerations, both Devin and the Board believe that a new CEO is best for the Company at this time.”
Wenig posted a series of tweets starting with, “In the past few weeks it became clear that I was not on the same page as my new Board. Whenever that happens, its best for everyone to turn that page over. It has been an incredible privilege to lead one of the worlds great businesses for the past 8 years.”
In its letter of agreement with Schenkel, eBay raised security concerns, writing, “Finally, as Interim Chief Executive Officer, you will also be encouraged to use the corporate airplane for personal travel to reduce possible security concerns where relevant, in accordance with eBay’s policy as described in the most recent annual proxy statement.”
eBay’s Chief People Officer Kristin Yetto ended the letter with a thank you from the entire eBay team for his “willingness to serve during this transitional time.” She likewise thanked Andy Cring in his letter of agreement.
See details in the company’s filing with the SEC.