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Wed Mar 9 2011 08:36:01

eBay Board Grants Performance-Based Stock to Top Execs

By: Ina Steiner

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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.




Comments (32) | Permalink

Readers Comments

eBay Board Grants Performance-Based Stock to Top Execs   eBay Board Grants Performance-Based Stock to Top Execs

by: Rick1313

Wed Mar 9 10:11:27 2011

Unlike Mr. Omidyar, I didn't wait until Valentine's Day to present my gift (actuallly gifts) to Mr. Donahoe.

First part was registered letters to Mr. Donahoe (signature required as eventual value may exceed US$250).

Second part was my two filed small claims lawsuits.

Wonder if Mr. Omidyar will ask Mr. Donahoe to pay for the damages out of his pocket. Seems appropriate as it is all happening under his multi-year site change plan.

Perhaps Mr. Donahoe can have Mr. Thompson chip in as one of the lawsuits involves PayPal CA Ltd.

eBay Board Grants Performance-Based Stock to Top Execs   eBay Board Grants Performance-Based Stock to Top Execs

by: Scotty

Wed Mar 9 10:38:20 2011

Silence with regards to reponses on this article would speak volumes....what on earth could be said that hasn't already been said ad nauseum..,

eBay Board Grants Performance-Based Stock to Top Execs   eBay Board Grants Performance-Based Stock to Top Execs

by: richpbooks
Web Site

Wed Mar 9 11:40:13 2011

The Volksvenue...

eBay Board Grants Performance-Based Stock to Top Execs   eBay Board Grants Performance-Based Stock to Top Execs

by: another side of the coin

Wed Mar 9 13:32:45 2011

Oh please Ina do we have to look at this photo again until other threads get started to push it off the page? Maybe a different photo with just his hand holding an iphone. We will know who he is.

eBay Board Grants Performance-Based Stock to Top Execs   eBay Board Grants Performance-Based Stock to Top Execs

This user has validated their user name. by: Anonymous Annie

Wed Mar 9 14:16:37 2011

'Another Side of the Coin' says: ''Oh please Ina do we have to look at this photo again until other threads get started to push it off the page? Maybe a different photo with just his hand holding an iphone. We will know who he is.''

MY THOUGHTS EXACTLY!! I can't stand to look at that perpetual SMIRK on his face! ~ After seeing this story, I updated my browser's ''ad-blocker'' plug-in to automatically block this photo AND any other photo that contains *donohoe* (where the ''*'' = wildcards to match any text.)

I know it sounds juvenile and petty for me to be this way. I realize that. I'm not trying to be childish... but honestly... the sight of his face just turns my stomach. It makes me ill. (That's not to suggest that he's ''ugly'' or unattractive... he rather ordinary, frankly.) It's just that arrogant smirk of his that is the personification of all the arrogance and greed of eBay execs. It's the symbol of everything eBay has done to the small, honest sellers... the ones who BUILT eBay... and the ones who can least afford the abuse that's being heaped on them.

~ Annie

PS: Note to Ina... if you ever use a different photo of the smirking-one, please be sure to include ''donohoe'' somewhere in the image filename. That way, my ad-blocker/spam-catcher will intercept it before I ever have to see his face again.

eBay Board Grants Performance-Based Stock to Top Execs   eBay Board Grants Performance-Based Stock to Top Execs

by: STOP IMPOSING YOUR WILL ON US JD

Wed Mar 9 14:31:50 2011

I agree with another side of the coin, must we look at that nauseating photo of Donahoe ? Excuse me I got to go take some emetrol to prevent me from puking looking at his face

eBay Board Grants Performance-Based Stock to Top Execs   eBay Board Grants Performance-Based Stock to Top Execs

This user has validated their user name. by: Ming the Merciless

Wed Mar 9 14:38:34 2011

There is some good news on the stock issue front.

Monday, Reuters reported that former Galleon Group hedge fund manager, Raj Rajaratnam, went on trial yesterday for ILLEGAL insider trading based on insider information he allegedly obtained/received from several corporations INCLUDING EBAY and GOOGLE.

According to Reuters,(link below), this leech profited to the tune of $45 MILLION dollars based on information he and other Galleon past and present employees obtained from corporate officers with a fudiciary responsibility not to disclose said information.

http://www.reuters.com/article/2011/03/07/us-galle
on-trial-idUSTRE7263EI20110307

Is
there anyone here who believes ebay didn't do this? Anyone?

According to Bloomberg news, speculation is that ebay could be sued over this as well:

http://www.bloomberg.com/news/2011-03-07/rajaratnam-trial
-may-spark-lawsuits-against-goldman-mckinsey-amd-intel.html

Devoutly
to be wished.

Ebay's stock has gone substantially up on numerous occasions many for no discernible reasons in the last two years, and I've always believed illegal stock manipulation and illegal information disclosure (if not outright bribery) was going on.

Meg Whitman got caught with her ebay stock shares in a wad a few ago, and apparently the amoral bloodsuckers currently running ebay thought they were so much smarter.

Never forget, however, that the corruption between many corporations and Wall Street is disgustingly rampant with little government oversight. (This is one reason why Republicans want to starve government.) So, IMO, this likely has been going on inside ebay for quite a while and Rajaratnam probably isn't the only manager / analyst who allegedly received illegal information from ebay executive(s).

Gee, can we think of the names of other suspects?

eBay Board Grants Performance-Based Stock to Top Execs   eBay Board Grants Performance-Based Stock to Top Execs

This user has validated their user name. by: Anonymous Annie

Wed Mar 9 14:49:43 2011

Hi Ming! Wouldn't you just love to see Donohoe do the ''perp-walk''... handcuffed, being escorted by agents out of the eBay offices, past the gawking onlookers, clueless eBay employees, and television news cameras ready to document his sorry azz being driven away for processing.

Oh, a girl can dream, can't she?

eBay Board Grants Performance-Based Stock to Top Execs   eBay Board Grants Performance-Based Stock to Top Execs

This user has validated their user name. by: Ed Gadfly
Web Site

Wed Mar 9 15:45:33 2011

Don't take it personal. eBay has an obligation to their shareholders.

Tell you what. I'll change your mood.

Click the link.

eBay Board Grants Performance-Based Stock to Top Execs   eBay Board Grants Performance-Based Stock to Top Execs

by: Patricia This user has validated their user name.

Wed Mar 9 16:15:06 2011

No comment...

eBay Board Grants Performance-Based Stock to Top Execs   eBay Board Grants Performance-Based Stock to Top Execs

by: Digby

Wed Mar 9 18:20:07 2011

I think we are all bored with JD and his stock.

This blog has had 10 replies, the one on Bonanza has had 50!


eBay Board Grants Performance-Based Stock to Top Execs   eBay Board Grants Performance-Based Stock to Top Execs

This user has validated their user name. by: Ming the Merciless

Wed Mar 9 19:49:11 2011

@ Anonymous Annie

I'd prefer The Ho be perp walked through a gauntlet of all the ebay sellers he's fracked and continues to frack.

@ Ed Gadfly

Why do you post this link near a meal time?

Lions are predators so at least they picked an appropriate song however much the lyrics made me barf and however much talent the performers lacked both of which were considerable.

Those who think the Bonanza thread is more important than this thread are wrong although Bonanza seems to be headed towards ebafia standards and practices.

eBay Board Grants Performance-Based Stock to Top Execs   eBay Board Grants Performance-Based Stock to Top Execs

by: Lawrence A Dickerson

Wed Mar 9 23:41:59 2011

@ Digby.

The answer to your question/comment about the lack of participation on this subject is because the usual group can't rant and rave how eBay is going under and is going to go bankrupt and other complaints.This article proves them wrong.

eBay Board Grants Performance-Based Stock to Top Execs   eBay Board Grants Performance-Based Stock to Top Execs

by: Rick1313

Thu Mar 10 01:13:09 2011

To Dickerson's post...

Since I've been on the board I have not seen much from the ''usual group'' that claims that ''eBay is going under''.

Seen posts state that eBay,inc. (with PayPal and overseas sites out of the financial picture) is not top performing given 1) last years huge fee increases; 2) The average sale transaction price dropping steadily; 3) gains by eBay,inc. with further restrictive/punitive measures that have sellers losing their TRS/PS discounts and lowered account performance standing (which increases listing fees and store subscription fees); 4) etc., etc., etc.

Perhaps you can back up your opinion and name some of these posters instead of the vague ''usual group''.

Or perhaps you would like to amend your opinion to say that the ''usual group'' talk about Mr. Donahoe getting the boot. Not so much that eBay,inc. is going down.

It would be unwise for eBay,inc.'s board of directors to not give out the bonuses a second year in a row as this would conflict with the rosy picture that Mr. Donahoe and friends painted at the Analyst Day session.

eBay Board Grants Performance-Based Stock to Top Execs   eBay Board Grants Performance-Based Stock to Top Execs

by: Joe Average

Thu Mar 10 01:20:09 2011

Regarding the post directly above, Duetche Bank put a sell recomendation on the stock recently, and pretty much everyone acknowledges that it is underperfoming in relation to e-commerce in general. underperforming especially when compared to its "idol" which is Amazon. Paypal has been its only saving grace dude, and only because folks are forced to use it.

One thing that the numbers cannot relate is the amount of goodwill that has been burnt by eBay.

eBay Board Grants Performance-Based Stock to Top Execs   eBay Board Grants Performance-Based Stock to Top Execs

by: Joe Average

Thu Mar 10 01:21:03 2011

Sorry, my post was a response to Dick.

eBay Board Grants Performance-Based Stock to Top Execs   eBay Board Grants Performance-Based Stock to Top Execs

This user has validated their user name. by: Ming the Merciless

Thu Mar 10 01:26:42 2011

The Dick claims to be an ebay buyer which might be true on occasion.

I suggest he's first and foremost a social engineer paid to make derogatory comments about sellers while, if you'll read his posts in their aggregate, finding ways to damn ebay with his feint praise.

Ignore him.

eBay Board Grants Performance-Based Stock to Top Execs   eBay Board Grants Performance-Based Stock to Top Execs

by: Smitty

Thu Mar 10 02:34:20 2011

@ Lawrence A Dickerson
     
''The answer to your question/comment about the lack of participation on this subject is because the usual group can't rant and rave how eBay is going under and is going to go bankrupt and other complaints.This article proves them wrong.''

This article only proves that the same old bold theft of this corporation's assets are still ongoing.

While the board has awarded billions of dollars as bonuses, they have never paid one red cent as a dividend to the stockholders.

As I watch the ebay story unfold, I constantly see the parallels to Enron.

Back in 1999 CFO magazine gave Andrew Fastow an award for excellence. My memory indicates they also featured him on their front cover. Down in Houston, there was more than one reporter who were claiming the whole show was a scam. Wall St and the rest of the business community did not want to hear it.

It took a number of years for the truth to win out.

We here who maintain that ebay has also become a criminal enterprise, patiently await the truth to also come out. And it will.

You cool aid drinkers not withstanding.

Smitty

eBay Board Grants Performance-Based Stock to Top Execs   eBay Board Grants Performance-Based Stock to Top Execs

This user has validated their user name. by: Ming the Merciless

Thu Mar 10 13:50:39 2011

@ Smitty

I've approached the editor of a mid major California daily about this criminal syndicate that should be investigated and prosecuted under, IMO, the RICO laws.

He wasn't interested.

So who besides us and Jeetil Patel gets even the partial truth about this criminal syndicate?

eBay Board Grants Performance-Based Stock to Top Execs   eBay Board Grants Performance-Based Stock to Top Execs

This user has validated their user name. by: Ric

Thu Mar 10 14:03:27 2011

Showering executives with awards of stock when those same executives are failing to increase traffic on eBay indicates that the Board is as out of touch with their own marketplace as is the management they are rewarding.

This does not bode well for eBay sellers who are subjected to ever increasing fees and are receiving less and less traffic to their listings.

eBay's Board Of Directors should stop all stock awards unless and until the current management team demonstrates that they have implemented policies which result in significantly increasing traffic volume to the marketplace.

Without an increase in market share, management is not accomplishing anything meaningful, and as such should not be rewarded for their failed efforts.

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