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

This user has validated their user name. by: RKTOYS

Thu Apr 11 11:45:20 2019

I don't like the use of the word "earns" because "is paid" is more accurate.

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

Thu Apr 11 11:53:08 2019

@DeathFromAbove

8k is way too much, from what I can see the minimum wage is about $10 a day or about $1.25 an hour x 2040 hours = $2550 a 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: JohnGermaine This user has validated their user name.

Thu Apr 11 11:56:12 2019

No wonder they are going under!!  Worst CEO they have had since Dono-Dummy!!  What in the world is wrong with corporations these days????  Isn't there a pool of candidates with brains any more?????

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

Thu Apr 11 12:02:53 2019

@epuise

"Most of the country is in Recession mode."

BINGO! We have a winner on why sales are down across the board for almost all 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: toolguy

Thu Apr 11 12:05:49 2019

@JohnGermaine

"No wonder they are going under!! "

eBay is NO where near going under!

They have a market cap of $33 billion and a P/E ratio of 15, with those numbers it's nearly IMPOSSIBLE to go under. . . .

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

by: ebayout This user has validated their user name.

Thu Apr 11 12:12:36 2019

ebay stock is taking it in the shorts today...
Shares of eBay (NASDAQ:EBAY) are down 3.25% after data from YipitData shows a deceleration in the e-commerce platform's U.S. marketplaces business for Q1, per Bloomberg.
Wenig's job is to maximize the stock price. He hasn't done his job for 2 years.
The stock would be at $25 if not for the activist stockholders. They're doing HIS job.
He's just riding the wave.

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: RKTOYS

Thu Apr 11 13:17:53 2019

@toolguy
ServiceNow, like an awful lot of 'enterprise" software, is a pretty awful system that's sold to people that never have to use it and therefore don't make a connection to the pain it inflicts on end users.

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

by: ebayout This user has validated their user name.

Thu Apr 11 13:22:06 2019

ebay...a great place to visit, but you wouldn't want to live there

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.

Thu Apr 11 15:04:07 2019

Tool, thanks for the link.

You have proven my point. The stock price of ServiceNow has increased significantly over 5 years; as is the case with many corporations. Much of it has been just in the last couple of months. I am sure there is some external explanation for it.

John Donohoe is merely riding the wave, just like he did at eBay. The stock would likely perform the same whether he was there or not. It might even be better. I don't know and would need to research in depth to say for sure.

To clarify my earlier point, thanks to the info you provided a link to, the stock price declined ON THE DAY it was announced that JD would be CEO. That announcement came out February 27th of 2017 as per an article published by Reuters on that day. On Feb 27, 2017 the stock closed at 87.75, down from the prior day close of 91.82, just under 5%. It dropped a bit more the next day to 86.92.

You're correct, he has stumbled into a gold mine. After practically imploding the livelihoods of countless sellers within the last gold mine that he pillaged. It's nice to see he is doing so well. The majority of the ''lucky ones'' he left behind are staying even AT BEST.

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.

Thu Apr 11 16:02:08 2019

Tool writes:

''They have a market cap of $33 billion and a P/E ratio of 15, with those numbers it's nearly IMPOSSIBLE to go under. . . .''

Ummm...those numbers mean little if shareholders begin selling off their shares for any reason. Both metrics are dictated by the market and are influenced by all sorts of factors.

Ask the former CEO of Blockbuster, Toys R Us, Countrywide, Bear Stearns, Yahoo and numerous others who have gone down hard and fast. All of them had arrogant leaders who thought they were too big to fail.

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: QueenMab

Fri Apr 12 13:39:22 2019

Outrageous!Insanely Overpaid Clueless Suit! Continuously driving ebay Sellers into a never-ending black hole.

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

by: fAlken This user has validated their user name.
Web Site

Sun Apr 14 11:54:00 2019

I hate reading all this nonsense about the "Wage gap" and "It's not fair".  He's doing a terrible job and I think the board should replace the entire lot of management because they're doing a terrible job as far as I can tell, but I don't know what their actual goals are, perhaps he's doing just what they want.

But this narrative that there's only one single pie in America to which everyone takes a cut to survive and there's these fat cats that take a larger slice of the pie and leave none for the rest.  Well the ones that complain are not producers, they do not create jobs, the wealthy do, they're baking more pies that we take a slice from, it's ridiculous.  We live in a victim mentality in the USA in 2019.  Wenig appears to be doing a terrible job and should be replaced, but it's so ridiculous when an article is put out with this kind of phrasing "Ebay CEO makes 152 times more than the low level grunt CSR that takes customer service calls".  It's almost suggesting that the CEOs position is no more important than the guy who answers the phones and this train of thought comes from the victim mentality.  

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

Mon Apr 15 11:45:59 2019

@fAlken

eBay has a P/E of 15

They are making money!

Lots of money!

Amazon is 30 times the size of eBay yet only makes 5 times as much profit.

Google makes way more money then Amazon and Apple makes more then eBay, Amazon & Google combined. . . .

Wenig's doing just as he should and the 15 P/E reflects this. . . .

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