|Wed Mar 9 2011 08:36:01|
eBay Board Grants Performance-Based Stock to Top Execs
By: Ina Steiner
eBay founder and Chairman of the Board Pierre Omidyar made a nice Valentine's gift to someone this year - he gifted 316,000 shares of eBay stock on February 14, 2011. (Perhaps a gift to his venture capital firm, the Omidyar Network?)
After seeing a flurry of insider trading reports (Form 4) from eBay executives filed with the SEC this month, I noticed they were cashing out some shares (Non Open Market) to satisfy tax withholding obligations as their performance-based stock became vested.
eBay CEO John Donahoe's filing revealed he was granted 110,018 shares of common stock as a result of eBay's achievement of performance criteria for 2009/2010. The remaining 50% of the shares will vest on March 1, 2012. (You might remember that in 2009, eBay top executives failed to meet performance targets set by the Board of Directors in 2008 and had to do without their Incentive Plan bonuses that year.)
I also noticed that eBay's Board of Directors granted new stock to top execs including the CEO and to PayPal President Scott Thompson. The board's compensation committee approved performance-based restricted stock contingent upon the attaining performance criteria over a two-year period (2011-2012).
"If the performance criteria are achieved, the reporting person will be granted shares of eBay common stock in March 2013, which will be 50% vested on the date of the grant. The remainder of the shares will vest in March 2014 (assuming eligibility requirements have been met)."
You can sift through the data yourself on eBay's Investor Relations page.
It's almost time for eBay's annual shareholders meeting - last year it took place on April 29 in San Jose. The company hasn't yet published the date of this year's meeting.