|Tue Mar 22 2011 10:26:11|
Top eBay Execs Received $40 Million in Compensation Last Year
By: Ina Steiner
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.