Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Wed Apr 10 2019 00:32:15

eBay CEO Devin Wenig Earns 152 Times That of Employees

By: Ina Steiner

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eBay CEO Devin Wenig makes 152 times the average salary of employees, according to company filings. eBay disclosed the information this week as required by Section 953(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

In 2018, Wenig earned $18.17 million in total compensation, compared to $17.67 million in 2017 and $15.94 million in 2016.

In its filing with the SEC, eBay revealed the following about the CEO Pay Ratio metric:

- The median of the annual total compensation of all of our employees, other than Mr. Wenig, was $119,562.

- Mr. Wenig's annual total compensation, as reported in the 2018 Summary Compensation Table, was $18,172,166.

- Based on this information, the ratio of the annual total compensation of Mr. Wenig to the median of the annual total compensation of all employees is estimated to be 152 to 1.

Public companies were required to report the CEO Pay Ratio metric for the first time last year, shedding light on the discrepancy between CEO and employee compensation. But given the fact the ratio increased for eBay's CEO (he earned 143 times employees the prior year), it looks like it may not make any difference to the Boards of public companies - unless without the public disclosure it would have gone even higher.

The Board explained some of what it looked for in evaluating Wenig's performance:

Determining 2018 Target Compensation for our CEO
The Compensation Committee takes a multi-year view of Mr. Wenig's total compensation, with the objective of rewarding his leadership of the Company and tying his compensation to Company results and stock price performance. In doing so, the Compensation Committee has sought to link Mr. Wenig's compensation with the sustainable long-term performance of the Company.

The Compensation Committee considered many factors in setting the various components of Mr. Wenig's compensation, including the factors set forth below. In evaluating performance against these factors, the Compensation Committee assigned no specific weighting to these factors and it evaluated individual performance in a holistic manner.

- Execution against the Company's long-term strategic plan to drive the best choice, the most relevant, and the most powerful selling platform

- Performance against target financial goals and operating goals including initiatives related to customer experience, buyer growth, payments, and advertising

- Driving innovation and execution across eBay

- Building an excellent executive management team and a values-based culture that is inventive, bold, courageous, diverse, and inclusive to enable eBay to attract and retain top talent

- Providing leadership and vision to improve eBay's position as a leading ecommerce player that is environmentally and socially responsible

How interesting would it be to see a comparison of CEO pay to marketplace sellers!

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Perminate Link for eBay CEO Devin Wenig Earns 152 Times That of Employees   eBay CEO Devin Wenig Earns 152 Times That of Employees

by: I Must be Crazy This user has validated their user name.

Wed Apr 10 16:41:19 2019

Tool...

You are in the minority. The vast majority of people think CEO compensation is grossly out of balance. Even if he performed well, (which he hasn't or he wouldn't have activist investors on his tail), that amount of compensation for showing up to work is a bit much. He didn't start the company and has no ownership in it other than the generous stock options that he receives.

Wenig's cohorts at other companies are likely all in the same league. (Where do you think his board comes from?) They all look out for one another. These people are not brought in so much for their ability, but rather through their relationships. In other words, they suck up to the right people. John Donohoe  was lunch buddies with Meg Whitman at Bain. She picked him to ''run'' eBay. That fool now runs ServiceNow, with whom he contracted business to while at eBay. The stock of that company dropped when it was announced he would be CEO.

Devin Wenig couldn't succeed running his dad's company. He missed the mark at Reuters. Landed into eBay and lucked into the CEO post after the forced split with Paypal. We see the results. But what's it to him? He could retire tomorrow and his grandchildren's grandchildren wouldn't need to work.

What bothers me more is the median being in excess of $119,000. What?? Unless I am mistaken, that means that figure is the midpoint of all salaries paid to eBay employees. Meaning half of them earn over that amount. These are the same people who tell me that taking a loss is ''just a cost of doing business''. True, but so is paying the fees that pay those exorbitant salaries.

Perminate Link for eBay CEO Devin Wenig Earns 152 Times That of Employees   eBay CEO Devin Wenig Earns 152 Times That of Employees

This user has validated their user name. by: The End

Wed Apr 10 16:49:42 2019

What it is, is, an entire legion of Stepford suits the government uses to insure We never get any power through prosperity. Some come from Bain.
The Ebay venue is seen by the government as a way We can build up to a Nice Life.
But we are stuck on the same rung for over a hundred years.
The suits come in, after having staked out the situation, and destroy our way of life.
It will continue to happen until it's stopped.
They stalked Etsy, and here we are.

Perminate Link for eBay CEO Devin Wenig Earns 152 Times That of Employees   eBay CEO Devin Wenig Earns 152 Times That of Employees

This user has validated their user name. by: Rexford

Wed Apr 10 17:31:54 2019

Is he the only one here who is trying to make the post about himself?  As usual.

Perminate Link for eBay CEO Devin Wenig Earns 152 Times That of Employees   eBay CEO Devin Wenig Earns 152 Times That of Employees

by: Shanna This user has validated their user name.

Wed Apr 10 17:32:59 2019

Toolguy,

As an Ebay stockholder, the CEO has one job, to produce as much profit and as high a stock price as possible. For this, he has failed.  While AZ stock price has skyrocketed, ebay flounders. What exactly has he done as CEO that makes you think he warrants his pay?

Perminate Link for eBay CEO Devin Wenig Earns 152 Times That of Employees   eBay CEO Devin Wenig Earns 152 Times That of Employees

This user has validated their user name. by: toolguy

Wed Apr 10 17:54:59 2019

@I Must be Crazy

Here's a link to ServiceNow's stock price over the past 5 years.

Looks like Donahoe has a gem on his hands. . . .

https://finance.yahoo.com/quote/NOW?p=NOW

Perminate Link for eBay CEO Devin Wenig Earns 152 Times That of Employees   eBay CEO Devin Wenig Earns 152 Times That of Employees

by: Frank Abagnale This user has validated their user name.

Wed Apr 10 20:01:49 2019

I can think of 18 million reasons why Wenig doesn't care about sellers.

Perminate Link for eBay CEO Devin Wenig Earns 152 Times That of Employees   eBay CEO Devin Wenig Earns 152 Times That of Employees

This user has validated their user name. by: The End

Wed Apr 10 21:11:37 2019

Erase Wall Street, and the money is redirected to US.
The RIGHTFUL Claimants.
Remove the Wall Street Chains.
Level it. Bury it. Move on in Prosperity.

Perminate Link for eBay CEO Devin Wenig Earns 152 Times That of Employees   eBay CEO Devin Wenig Earns 152 Times That of Employees

This user has validated their user name. by: DeathFromAbove

Thu Apr 11 00:26:38 2019

I'm sure this boosts ebay's internal morale too.  What do their call center people in Malaysia earn?  About 8K per year?

Perminate Link for eBay CEO Devin Wenig Earns 152 Times That of Employees   eBay CEO Devin Wenig Earns 152 Times That of Employees

by: Chicago48 This user has validated their user name.

Thu Apr 11 01:27:12 2019

The Boards of directors (and stockholders) are the reason for the high CEO salaries.  We should follow Japan's lead and put a limit on it.

Perminate Link for eBay CEO Devin Wenig Earns 152 Times That of Employees   eBay CEO Devin Wenig Earns 152 Times That of Employees

by: DevilishlySarky This user has validated their user name.

Thu Apr 11 02:18:43 2019

" Your failure on eBay has nothing to do with who's the CEO, it's what you;re selling and at what price."

What utter garbage.....
So my price I ask for my items has nothing to do with overhead costs ,nothing to do with throttling or periodic blackouts , zilch to do with ebays 10% postage grab , nothing to do with free shipping or returns ,or ebays refusal to police their site effectively and remove serial thieves or unregistered businesses .

Perminate Link for eBay CEO Devin Wenig Earns 152 Times That of Employees   eBay CEO Devin Wenig Earns 152 Times That of Employees

by: DevilishlySarky This user has validated their user name.

Thu Apr 11 02:23:06 2019

Oh,and the price of my blood pressure tablets; after reading articles like that , have gone up too

Perminate Link for eBay CEO Devin Wenig Earns 152 Times That of Employees   eBay CEO Devin Wenig Earns 152 Times That of Employees

by: corpuschristi1956 This user has validated their user name.

Thu Apr 11 05:27:29 2019

I hate contrived looks of shock and dismay. SMH

Perminate Link for eBay CEO Devin Wenig Earns 152 Times That of Employees   eBay CEO Devin Wenig Earns 152 Times That of Employees

by: plcombs This user has validated their user name.

Thu Apr 11 06:47:54 2019

Just imagine what they'd pay him if he was doing a fabulous job..

Perminate Link for eBay CEO Devin Wenig Earns 152 Times That of Employees   eBay CEO Devin Wenig Earns 152 Times That of Employees

by: hawk This user has validated their user name.

Thu Apr 11 07:22:07 2019

i wouldn't care what any of these people make as long as they would keep their dirty hands out of honest working peoples pockets. they always steel from smaller working businesses to get another 50 cents. how much corruption is enough ???

Perminate Link for eBay CEO Devin Wenig Earns 152 Times That of Employees   eBay CEO Devin Wenig Earns 152 Times That of Employees

by: boardwalk This user has validated their user name.

Thu Apr 11 09:23:13 2019

"In evaluating performance against these factors, the Compensation Committee assigned no specific weighting to these factors and it evaluated individual performance in a holistic manner." What a crock.  No wonder Ebay needs programs like GTC, there are looking for anything that will increase revenue for them without any actual increase in sales.

Perminate Link for eBay CEO Devin Wenig Earns 152 Times That of Employees   eBay CEO Devin Wenig Earns 152 Times That of Employees

by: Moonwishes This user has validated their user name.
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Thu Apr 11 10:00:41 2019

I don't think anyone that is HIRED to run a business needs at most more than $1 million a month. Their own business is a different story. They own it so they should get some of the benefits of having taken the chance to start a company and bring it to the place it can pay out that much to the CEO/Owner.

People complain about Jeff Bezos and how much he makes. Amazon is his company and he took the chance of starting it - it could have been a horrible flop. But it wasn't. eBay seemed to work well until Pierre left and allowed someone else to take control of his company and run it to the ground.

If the compensation Wenig gets is in line with the hard work that the seller's put into it, the sellers would earn more and probably not mind how much he 'earns'. It would be interesting to know how much extra is brought into eBay by each rule change such as the GTC one. And of the money how much of it makes its way back to the sellers. I doubt if any does, but I'm sure a lot goes to Wenig and the top ten higher up suits at eBay which skews how much a median employee makes. All of whom get health benefits, annual paid vacations, retirement plans (the CEO golden parachute is obscene!), etc. all the things that sellers are attempting to provide for themselves out of their sales. I know some sellers aren't any better at selling than Wenig is CEOing, so I don't feel sorry for them not making decent money. But for the ones that do everything correctly they should be earning some decent money.

I do wonder since some have brought up DH, is he still taking his thinking days every two weeks at the tune of $161,500+ per day? He is making ~$800,000 a week. My numbers assume HE gets to take Saturday and Sundays off, unlike sellers that have to work 7 days a week, 24 hours a week 365 days of the year!  

Perminate Link for eBay CEO Devin Wenig Earns 152 Times That of Employees   eBay CEO Devin Wenig Earns 152 Times That of Employees

by: Laurie This user has validated their user name.

Thu Apr 11 10:34:44 2019

The economic fact for those who study history and can do math is that we are as a middle class worse off than the 20's when there was an epic of "robber barons" such as Carnegie's Mellon's and Morgans.  And they had no income tax!  At least in those days, the average entrepreneur could hang out his shingle and make a successful business with hard work and determination.  But then it got so bad, Roosevelt introduced Anti-Trust to help out these monopolies from squashing free trade.  

When is the last time we ever heard of anti-trust legislation keeping a company from getting too big for competition to enter?  Exit middle class, enter high paid CEO's and their friends in politics---translation TODAY'S ROBBER BARONS!!  Only now there is zero chance of hoping to hang out your shingle and make your business successful enough to compete with the big dogs.

Perminate Link for eBay CEO Devin Wenig Earns 152 Times That of Employees   eBay CEO Devin Wenig Earns 152 Times That of Employees

This user has validated their user name. by: epuise

Thu Apr 11 10:41:23 2019

IF Wenig -WORKED- 365 days a year, w/ no vacations, his gross pay is $49,780.82 - A DAY - How many eBay Sellers gross PAY { not sales } is $49,780.82 - a YEAR ? To gross that pay, the Seller would need at least $100,000. in eBay sales, a YEAR, to equal what Wenig gets - in a DAY -
ADD to that the FACT:
That the GOP Trump 'Tax Cut' ensured Wenig & eBay - PAID LESS TAX - last year, this years, etc... than peons... The ' little people ' - got - LESS deducted from PAYCHECKS, more ' take home ' due to the ' accounting trick ' of 'less with-holding '... Now, these dupes are getting:
1) LOWER tax refunds, 2) NO tax refunds, or 3) OWE taxes.
Yet... the BOD & CEO crowd makes millions, billions...
While the ' masses ' continue to ' take it '.
Not ' Fake News '... it's all out there... IF YOU READ.

Perminate Link for eBay CEO Devin Wenig Earns 152 Times That of Employees   eBay CEO Devin Wenig Earns 152 Times That of Employees

This user has validated their user name. by: epuise

Thu Apr 11 10:43:30 2019

Wenig got a 2.9% increase while the majority of Sellers saw big DECREASES in sales last year, this year... Despite what the 'fake news' TV tells you... Most of the country is in Recession mode.

Perminate Link for eBay CEO Devin Wenig Earns 152 Times That of Employees   eBay CEO Devin Wenig Earns 152 Times That of Employees

by: eastwestphoto This user has validated their user name.
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Thu Apr 11 10:53:59 2019

Most of the powersellers I know and we meet every Saturday and Sunday at a large outdoor flea market seem to think that their sales are terrible. I realize that eBay makes money with the other 100 corporations it owns ,what the Board needs to do is look at the sales , the actual sales on eBay from sellers and use that as a measure of whether eBay as a corporation is being run correctly.

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