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Tue Mar 22 2011 10:26:11

Top eBay Execs Received $40 Million in Compensation Last Year

By: Ina Steiner

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eBay's top six executives received $40.4 million in compensation in 2010. The news comes a week after eBay announced an overhaul of its fee structure in which some sellers will see a reduction in fees. But for those who will see their profit margins squeezed because of the fee restructuring - particularly longtime auction sellers - the news will likely be a bitter pill to swallow.

eBay CEO John Donahoe earned $920,673 in salary in 2010, and - with bonus, stock and option awards, incentive plan and other compensation - he earned a total of $12.4 million - up from $10.1 million in 2009. Donahoe received $1.16 million in incentive plan compensation (iEP) tied to the company's performance. The CEO's use of the corporate jet was valued at $220,196, 81% higher than in 2009.

eBay's Chief Financial Officer Bob Swan also used the eBay jet, a perk valued at $71,000 in 2010. His salary was $768,606, with total compensation equal to $6.4 million.

PayPal President Scott Thompson earned a salary of $641,538 and total compensation of $10.4 million in 2010 - up significantly from the $3.2 million earned in 2009 and $2.6 in 2008.

CTO Mark Carges earned $562,404 in salary and a total compensation of $2.9 million in 2010, down from $3.4 million in 2009.

Lorrie Norrington, who stepped down as President of eBay Marketplaces in September 2010 citing personal family reasons, provided transition assistance to eBay as a full-time employee through March 3, 2011. She earned total compensation of $4.8 million in 2010 that included a salary of $696,892 and lump sum severance in the amount of $695,000. (Donahoe is acting President of eBay Marketplaces on an interim basis until a successor for Ms. Norrington is named.)

Are Executives Rewarded for Short-Term Performance?
When Meg Whitman ran eBay, some accused her of short-term thinking, focusing on the stock price and only looking out a few quarters. In fact, Wall Street pummeled Jeff Bezos for his long-term approach to running Amazon.com.

One eBay shareholder agrees with those who want to see eBay executives rewarded for long term performance. He has submitted a proposal that all shareholders will vote on in April that would eliminate supermajority stockholder voting standards. He specifically cited executive compensation as an area of concern:

"25% of our executives' annual cash incentive award was based on "individual performance" - a subjective measurement. Performance based restricted stock units (representing 30% of long-term equity grants) were based on either a two-year performance period or two one-year performance periods - no way such awards could be considered long-term."

eBay explains how it rewards executives in this filing.

eBay's annual meeting takes place in San Jose next month.




Comments (51) | Permalink

Readers Comments

Top eBay Execs Received $40 Million in Compensation Last Year   Top eBay Execs Received $40 Million in Compensation Last Year

by: auctioneer

Tue Mar 22 10:43:32 2011

See, that's the purpose of eBay. Transferring money from eBay to eBay executives.

Remember, the executives answer to the *shareholders*, not the sellers. The seller fee hikes aren't designed to raise money, they're just a big show. As long as the money-men are gulled into thinking eBay has long-term prospects, they can keep taking free hits at the money pinata.

Top eBay Execs Received $40 Million in Compensation Last Year   Top eBay Execs Received $40 Million in Compensation Last Year

This user has validated their user name. by: Philip Cohen

Tue Mar 22 10:54:54 2011

It would appear to me that Thompson (albeit the guardian of eBay’s ugly daughter PayPal) is the only one that earned any increase; all the others have been rewarded for taking the eBay Marketplace backwards, relatively speaking. I wish I could find such a job that paid so well for doing so poorly, then I never had the opportunity to acquire those Bain & Co skills for dismantling (destroying) a business..

Enron / eBay / PayPal / Donahoe: Dead Men Walking.

Top eBay Execs Received $40 Million in Compensation Last Year   Top eBay Execs Received $40 Million in Compensation Last Year

by: STOP IMPOSING YOUR FAILED INNOVATION ON US JD

Tue Mar 22 11:01:44 2011

Oh here is a message for the eBay Board of Directors, and Analysts.

If eBay is so damn wonderful and doing so good, why then is this board, letters, blogs here and everywhere filled with bitterness, complaints, and bad feelings toward ebay and the ebay management ?

How come if eBay truly got turned around like JD claims, that an equal amount of sellers do not post here and speak positively about ebay, and tie or exceed the complainers ?

Let me tell you why, because the majority of all sellers have taken a major hit in their income since JD, only ones making money are the EXECS, there is very few next to none sellers who ever post positively about eBay, simply because it is not a profitable venue for the majority of us any longer

All it has become is allot of extreme unfair bullsh*t stress and ridiculous seller standards to meet, that can be destroyed by just a couple of lousy buyers false ratings, uncontested by eBay ! Hell, that saves ebay the 20% discount so it can likely go to the execs fat checkbooks

So many freaking ways that eBay has screwed us sellers  the last 3 years and they just keep taking and taking from us diehards that are left, like Mr. Cohen said I believe, because of the stagnating eBay market JD has created.

JD my friend, you made Amazon grow by leaps and bounds since 2008, you drove up their stock price, because your innovation infuriated us, and continues to infuriate us sellers making almost all of jump ship to try Amazon.

Trying to copy Amazon will not bring it all back to eBay, you failed Sir, sorry to tell you that, but your brown nosers won't speak up to their brilliant eBay leader, so someone has to tell you your 3 year plan sucked and continues to erode ebay further into the abyss!

If I wasn't still desperate to cling to life on your NEW eBay, I would laugh so hard at this failed, ridiculous and desperate Disruptive Innovation you put forth my head would spin !

On your announcement board, Dinesh is always smiling offering free listings frequently it seems, and  low insertion fee's every other day or week anymore, yet your still just to damn greedy to implement 100 FREE Listings each month for every seller at ANY price !

Your after the FVF fee right ? Then stop Dinesh smiling at us every other week, make it 100 FREE listing at any price once and for all !

Why can you do that at .99 cents m but not at any price ? Don't the sellers and your FVF benefit from a bigger price ?

What to hell is wrong with your math skills eBay ?

100 FREE listings per month at any price for ALL sellers

It is a win win for sellers and eBay FVF

Have you not clearly seen as soon as the free listings stop, sellers cut back on listing ? Were sick of wasting HARD EARNED money to not have an item sell then pay you up to $1.00 or more on each item that does not sell !

Sell through rates are HORRIBLE, then you give us 100 FREE listing at .99 cents, but not at a big price

GREED = eBay

Top eBay Execs Received $40 Million in Compensation Last Year   Top eBay Execs Received $40 Million in Compensation Last Year

This user has validated their user name. by: Philip Cohen

Tue Mar 22 11:02:41 2011

The current disingenuous actions with its FVFs are no more than eBay’s latest desperate, attempt to fool Wall Street (far too easy!) and the eBay Board presumably, as to the true state of eBay’s progress, by trying to squeeze the same, or even greater, profit from the stagnating revenues of the Donahoe-crippled Marketplace (expect more of these fee “decreases” and desperate manipulations as the eBay Marketplace continues its downward spiral). Of course, this ongoing policy of desperation cannot succeed—surely, not even in the medium term let alone the long term—and must ultimately end in the implosion of this now pathetic “house of cards”; it’s only a matter of time …

Enron / eBay / PayPal / Donahoe: Dead Men Walking.

Top eBay Execs Received $40 Million in Compensation Last Year   Top eBay Execs Received $40 Million in Compensation Last Year

by: Sad & Disgusted

Tue Mar 22 12:18:47 2011

This disgusts me. It's sickening!

It also makes me sad when I realize how many other small, honest and hard-working sellers have been impacted by the extraordinarily hostile policies of this regime.

I'm hurting, but so many more have been forced out and left with nothing. Others have been unfairly penalized and demoted... and those are the ones who can least afford to take such a drastic hit on their income. Even if it's just ''supplemental'' income (as is the case with me) there's a REASON that we're seeking supplemental income...because we NEED IT!

Even the ''hobby'' and part-time small sellers are on eBay because they hope to earn a few extra dollars.

I'm all in favor of a company earning profits... but on the other hand, those profits should be EARNED for their achievements and improvements. They shouldn't be based on how HARD they can SQUEEZE every nickel from their sellers.

Their profit should be the result of a SUCCESSFUL SITE where the *SELLERS* are successful! Our success becomes eBay's success! Our growth is eBay's growth!

Right now, their ''growth'' and ''profit'' is based ONLY on how much more they can TAKE-TAKE-TAKE without giving any benefit in return.

They drain me dry, and I get nothing in return. Perhaps it would be different if eBay's continually increasing rates were tied to some measurable improvements in sell-through rates, traffic, etc. I'd be happy to pay these increases if I could see that eBay was improving and making extra profit for me.

But that's not the case. Sales and traffic are dwindling... but FEES, PENALTIES and RISKS are growing!

It's little wonder that sellers are so resentful. No mystery here about WHY sellers are abandoning eBay and striking out on their own.

And as the good sellers slowly wander away, the good buyers start to follow. (Little wonder that the only buyers left are the scammers and high-maintenance buyers.)

eBay execs DESERVE NOTHING because that's exactly what they've EARNED!

Top eBay Execs Received $40 Million in Compensation Last Year   Top eBay Execs Received $40 Million in Compensation Last Year

by: Tony DeLuca

Tue Mar 22 12:55:35 2011

Who says crime doesn't pay!

Top eBay Execs Received $40 Million in Compensation Last Year   Top eBay Execs Received $40 Million in Compensation Last Year

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

Tue Mar 22 13:04:51 2011

LMAO! You would think a thief of JD's stature would have a more impressive jet.

That looks like the second hand cr@p they sell on eBay.

Maybe Uncle Grief will talk some jet on his sad little ''radio show'' this afternoon. He's featuring a former detractor turned KoolAid drinker and that always makes me laugh.  

Top eBay Execs Received $40 Million in Compensation Last Year   Top eBay Execs Received $40 Million in Compensation Last Year

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

Tue Mar 22 14:14:21 2011

Though probably worse than most, the ebay paradigm has become the rule rather than the exception among large corporations and their allies in crime, Wall Street.

The interests of long term stockholders have been relegated to a distant second place in 21st century transglobal corporations.

Corporations have become the personal playgrounds whose purpose is to enrich a few, handpicked company executives, Wall Street banksters, and fund managers.

They manage corporations to make themselves obscenely rich and do so by further destroying the middle class. No where is this B school strategy more apparent than on ebay.

Since 2008, ebay has been run by the super rich for the super rich AT THE EXPENSE OF THE MIDDLE CLASS SELLERS WHO MADE EBAY SUCCESSFUL.

Ebay and other criminal corporations get away with this because they've arrived at the point where enough politicians have been bought and paid for that they have little to fear from regulatory agencies.

Nowhere is the more apparent than in California. In spite of thousands of consumer complaints filed against ebay, I can find no evidence that the California Attorney General's Office has ever investigated a single one of them.

Unless we all understand that every decision ebay executives make is ultimately made for the purpose of enriching themselves,
then there is no hope that ebay will become at least a minimally hospitable place for small sellers.

The ongoing Raj Rajaratnam trial represents only a visible part of the tip of the corporate crime iceberg.

No amount of money is enough for these sociopathic piranhas. They want more and more and more and are constantly devising new ways to steal it from the middle class.

Ptricia so correctly pointed out the other day in another thread that the only people who make money buying and selling ebay stock are those whose profitability depends on high volume and low margins.

Yet ebay is curiously held in many mutual fund portfolios apparently managed by those who buy the ebay spin.

If you have retirement investments, divest yourself of any fund that contains ebay stock.

Ebay stock like ebay itself presents far too much future risk and is unsafe for the average investor.

Top eBay Execs Received $40 Million in Compensation Last Year   Top eBay Execs Received $40 Million in Compensation Last Year

by: eeny meany miny moe

Tue Mar 22 16:25:34 2011

''In fact, Wall Street pummeled Jeff Bezos for his long-term approach to running Amazon.com.''

OK, so who's laughing now?

eBay can go down the toilet for all I care.

Top eBay Execs Received $40 Million in Compensation Last Year   Top eBay Execs Received $40 Million in Compensation Last Year

by: Patricia This user has validated their user name.

Tue Mar 22 18:36:22 2011

"Top eBay Execs Received $40 Million in Compensation Last Year"

Can you hear them?.....oink, oink...

Top eBay Execs Received $40 Million in Compensation Last Year   Top eBay Execs Received $40 Million in Compensation Last Year

by: Todd Pudwhack

Tue Mar 22 18:38:34 2011

We ePrey executives deserve those bonuses!

Do you have any idea of how many overtime hours we expended in the location and acquisition of Bilk Me Later?

Finding a payment conduit acquisition as insidious a PayPal is no mean task.

You sellers are always griping about how hard you work but finding a criminal oriented going concern, with unindicted principal officers, to increase our share of wallet is getting really tough.

We were too late to get in on Enron so we have to keep all our front toes pointed forward in order to not miss out on an acquisition that the RICO Statues have not not already got in their headlights!

We work hard plundering eBay!!!

Top eBay Execs Received $40 Million in Compensation Last Year   Top eBay Execs Received $40 Million in Compensation Last Year

by: curious1

Tue Mar 22 19:54:13 2011

Any stats available as to how much of that was derived from the gamut of ebay-paypal fraud or their unscrupulous business practices?

Top eBay Execs Received $40 Million in Compensation Last Year   Top eBay Execs Received $40 Million in Compensation Last Year

by: Digby

Tue Mar 22 21:34:00 2011

Why do they call it compensation?

Its salaries and bonuses.

It is us the sellers who should get some compensation for having such low visibilty on their site.


Top eBay Execs Received $40 Million in Compensation Last Year   Top eBay Execs Received $40 Million in Compensation Last Year

by: STOP IMPOSING YOUR FAILED INNOVATION ON US JD

Tue Mar 22 21:41:44 2011

Just where is the traffic and the sales, bids etc. ?

Last April, store to core no sales for about a month, now this year I see less traffic and less sales again like last year, but why ? Was it store to Core, or is eBay truly dying even faster than I think ?

My sales and views, paying bidders etc. has died down majorly in the past 2 weeks, like a freaking Ghost Town

I mean this is the popular eBay household name, where to hell are the bidders/buyers and wathcers ?

Top eBay Execs Received $40 Million in Compensation Last Year   Top eBay Execs Received $40 Million in Compensation Last Year

by: Sayonara eBay

Tue Mar 22 22:40:25 2011

"Lorrie Norrington, who stepped down as President of eBay Marketplaces in September 2010 citing personal family reasons, provided transition assistance to eBay as a full-time employee through March 3, 2011. She earned total compensation of $4.8 million in 2010 that included a salary of $696,892 and lump sum severance in the amount of $695,000."

If Ms. Norrington stepped down because of family matters, how is she receiving severance pay?  Doesn't severance pay indicate she was 'severed' from eBay by eBay?

Reason?  The lackluster performance  of the US Marketplace.

Top eBay Execs Received $40 Million in Compensation Last Year   Top eBay Execs Received $40 Million in Compensation Last Year

by: On Lies and Secrets This user has validated their user name.

Tue Mar 22 22:50:29 2011

The Auctionbytes NewsFlash was actually somewhat heartening.  Finally, an ebay shareholder (Chevedden) has wised up and is beginning to suspect what everyone else on the ground has long realized - that the ebay management team and certain members of the board are using risky governance schemes and management tactics in order to enrich themselves personally (as is seen in their excessive compensation packages) rather than engaging in sound management and governance that preserves the value of the corporation over a longer term.  It is rather clear to people on the ground that ebay executives don't care anything about ebay buyers, ebay sellers or ebay shareholders - ebay executives only care about themselves and adding to their personal fortunes at the expense of everybody else.  

I actually don't have a lot of hope that the shareholders will be able to turn things around and restore order and discipline to the ebay corporation, though.  I think things are too far gone at this point. (When shareholders sued Meg Whitman over stock spinning several years back, they should have nipped the problem in the bud then, but they didn't - they settled and so here we are today...)   Still, it will be interesting to watch the fallout as all of this unfolds.  If I was a betting person, I would wager that one or two of the executive team will end up threatening/filing a lawsuit against the ebay corporation if their compensation is seriously threatened...

Top eBay Execs Received $40 Million in Compensation Last Year   Top eBay Execs Received $40 Million in Compensation Last Year

by: Rich

Wed Mar 23 00:42:19 2011

The title of this article explains why buying and selling on ebay gets worse and worse.  Higher prices for buyers and higher fees for sellers so these 6 and most like the next group under them can take all the money.  Ebay crashes when enough sellers go broke and enough buyers leave for Amazon, Craigslist and others

Top eBay Execs Received $40 Million in Compensation Last Year   Top eBay Execs Received $40 Million in Compensation Last Year

by: Joe Average

Wed Mar 23 00:45:34 2011

Regarding the comment above by on lies..., I suspect that the shareholders are currently placated by the performance of their shares.

The stock has done quite well since the depths of the financial crisis (around 270% appreciation), although as it sits right now, it is currently almost 15% off of its high for the year.

When the stock market bubble bursts (again I'm afraid), perhaps they will take a second look at the Board of Director and management

Top eBay Execs Received $40 Million in Compensation Last Year   Top eBay Execs Received $40 Million in Compensation Last Year

by: watcher

Wed Mar 23 00:50:24 2011

Interesting blog:

March 22, 2011, 12:08 PM ET

Google: Unfair Discount Versus eBay, Says Deutsche

among other things...

...There is, consequently, "a mispriced premium for [eBay] stock,...

...[ebay] ...continues to show deteriorating market share trends....

Top eBay Execs Received $40 Million in Compensation Last Year   Top eBay Execs Received $40 Million in Compensation Last Year

This user has validated their user name. by: Philip Cohen

Wed Mar 23 01:30:19 2011

Yes, can someone please tell me why it is that Deutsche Bank’s Jeetil Patel is the only market analyst that has consistently had this unscrupulous, fraud facilitating, criminal organization’s card correctly marked?

Where are all these other guys such WSJ's Stu Woo getting their eBay info from? Must be directly from the eBay Dept of Spin!

Enron / eBay / PayPal / Donahoe: Dead Men Walking.

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