Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Sun Mar 29 2015 13:42:37

eBay Executives Fly High with Golden Parachutes

By: Ina Steiner

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Not only do eBay's top-tier executives get huge bonuses to stay with the company until the breakup is complete ("Golden Handshakes"), those who stay on after the split get the promise of huge bonuses if they end up leaving under "Golden Parachute" provisions. 

Reviewing eBay's proxy filing for an article about executive compensation for tomorrow's Newsflash (now available), it becomes clear many millions of dollars are on the table, no matter what goes down.

Here's a look at the Golden Parachute provision for the top four eBay execs. 

- eBay CEO John Donahoe and CFO Bob Swan get $3 million and $1.9 million in compensation, respectively, if the board lets them go "other than for cause."

- PayPal president Dan Schulman, who will become PayPal CEO after the split, scored a $20 million parachute, while eBay Marketplaces president Devin Wenig, who will become CEO of eBay after the split, scored even more: $22.5 million.
How the board treated eBay Chief Technology Officer Mark Carges last year shows it has leeway in how it doles out benefits to departing executives. 

Carges was at eBay for 6 years and, among other responsibilities, he oversaw eBay's search engine team. Despite the fact it was he who terminated his employment - and at a crucial time, just 4 months after eBay's security breach - eBay's board awarded him a generous separation package that included $468,750 and 18 months' worth of COBRA (health insurance) premiums.

eBay's board of directors also made a point of praising its "named executive officers." In a letter to shareholders included in the proxy statement, the board extended its heartfelt thanks and deep appreciation to Donahoe and his corporate leadership team, who led the strategy work that resulted in the Board deciding to separate eBay and PayPal. 

"The decision by Mr. Donahoe and his team to not place themselves in operating roles in either of the new companies has enabled a highly effective separation process and smooth management succession plan."




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Perminate Link for eBay Executives Fly High with Golden Parachutes   eBay Executives Fly High with Golden Parachutes

This user has validated their user name. by: RKTOYS

Sun Mar 29 15:08:27 2015

And we wonder why half the country sees "free" markets and corporate "leadership" as the sick jokes they are.

Perminate Link for eBay Executives Fly High with Golden Parachutes   eBay Executives Fly High with Golden Parachutes

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

Sun Mar 29 15:09:39 2015

The good old boys network takes care of itself. I mean, the shareholders are rewarding their corporate executives.

The fact that the executives own a lot of shares and vote to reward themselves, is lost on the fan boys.

Good for the gold getters! The buyers appreciate eBay management because they care. Thanks guys!

Perminate Link for eBay Executives Fly High with Golden Parachutes   eBay Executives Fly High with Golden Parachutes

This user has validated their user name. by: Philip Cohen
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Sun Mar 29 16:09:55 2015

Could Cage's "golden parachute" payment possibly be meant to keep his mouth shut? Regardless, everyone should by now understand that such corporations are run primarily for the benefit of their directors and senior executives, not their shareholders, or anyone else. ...

Regretfully, the only satisfaction that we are ever going to get is the knowledge that eBay is continuing on its journey to the sewage farm, and that undoubtedly, "PreyPal" will soon enough join it there in due course ... http://bit.ly/1nSA1Zl

The eBay executive suite—where the incompetent mingle with the disingenuous, the malevolent and the outright criminal, and the just plain stupid ... http://bit.ly/11F2eas  

Perminate Link for eBay Executives Fly High with Golden Parachutes   eBay Executives Fly High with Golden Parachutes

by: sasikat9 This user has validated their user name.

Sun Mar 29 16:28:56 2015

Hopefully the flying high club crashes....not to recover.

Perminate Link for eBay Executives Fly High with Golden Parachutes   eBay Executives Fly High with Golden Parachutes

by: sasikat9 This user has validated their user name.

Sun Mar 29 16:35:35 2015

% cohen You have flawed logic. The CEO of all big corporations are given very large bonus. IE the CEO of Government motors during the taxpayer financed bankruptcy. How about all those wall street types that have screwed the little guy out of their money. Ebay Executives are but a drop in the bucket...How about the politicians who are ruining the country and spending your taxes on their pork.

How about the clintons and their millions stashed away from prying eyes.  And you think the ^&*( in the white house will be poor the rest of his life.

If you don't like how the country is run or how much CEo are paid...Last time I look you were free to leave and go to another country.

Perminate Link for eBay Executives Fly High with Golden Parachutes   eBay Executives Fly High with Golden Parachutes

This user has validated their user name. by: Philip Cohen
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Sun Mar 29 17:36:42 2015

@sasikat9,

I already live in another country, where I can assure you executive remunerations are nowhere near the obscene levels they are in the U.S.

Indeed, in the country in which I live, we were unaffected by the GFC brought upon the world by many of your over-paid U.S. executives ...

Perminate Link for eBay Executives Fly High with Golden Parachutes   eBay Executives Fly High with Golden Parachutes

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

Sun Mar 29 17:40:40 2015

Jeez......
22.5 million bucks......
I'd be set for life and barely able to make my way through the house, what with all that dough taking up the rooms....
I could finally create that neighborhood of homes priced UNDER $100,000 each so the younger generation could finally settle down and have pride.
I'd be able to donate some to the SPCA.
Get ELECTRIC garage door openers for the New Garage.
Tip the newspaper carrier 1 THOU a year !
Get a lifetime supply of Sneakers.
Afford the fine for feeding the deer.
Buy a handicap van every year for the lucky "Handicap Van Lottery" winner.
Make a HUGE home for wayward women.
Buy plots and grave stones for the veterans and others that would otherwise go without.
Get a HEATED DRIVEWAY so I never have to shovel snow again.
Give a TON of dough to Shriners and St. Jude Children's Hospitals.
Finally get that Chrysler 300 I always wanted.
A lifetime supply of seltzer, under armor, and cable TV !

Perminate Link for eBay Executives Fly High with Golden Parachutes   eBay Executives Fly High with Golden Parachutes

This user has validated their user name. by: Ric

Sun Mar 29 22:01:36 2015

The perpetuation of making billionaires out of eBay executives is one of the primary reasons eBay is failing as a marketplace.

By feeding the insatiable appetite of executive salaries and compensation packages, eBay assures that pressure to generate revenue from any and all sources will continue uninterrupted putting sales growth in the rear view mirror of executive concerns.  

This assures that seller fees will escalate in order to satisfy that appetite while at the same time causing small sellers meager profits to evaporate, thus reducing the number of sellers and shrinking SKU diversity in the marketplace.

We have already seen this vicious cycle play out as John Donahoe made marketplace decisions based solely on the ability to generate revenue to cover his outrageous compensation package as well as the packages of his hand picked partners in crime.

The result of the hundreds of millions flushed away on Donahoe and his cronies are that of a broken marketplace that is unable to generate any meaningful growth in sales - and the insane actions of the eBay board to give golden handshakes to these failed execs shows how singularly unconcerned the Board of Directors are about the failure of eBay's marketplace to generate genuine growth in sales.

There is only one way to successfully focus the executive team at eBay on growing sales...

eBay executive compensation packages should be directly tied to the team's ability to generate genuine growth in sales at rates equal to or exceeding that of the rest of the ecommerce industry.  Likewise, as sales growth falters, so should the compensation bestowed upon these non functioning empty suits.

Perminate Link for eBay Executives Fly High with Golden Parachutes   eBay Executives Fly High with Golden Parachutes

by: handmedownheaven This user has validated their user name.
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Mon Mar 30 00:21:09 2015

Lets put it this way.  The lowest paid of the bunch makes $148,000 a week making decisions that screw with people trying to sell things to pay their light bill.  And corporate greedy America can't figure out why they are hated.

Perminate Link for eBay Executives Fly High with Golden Parachutes   eBay Executives Fly High with Golden Parachutes

by: FREDDY This user has validated their user name.

Mon Mar 30 00:26:34 2015

The BOD approved all the ridiculous bonus and wages. Makes me wonder what the board makes including the under the table perks???????

Perminate Link for eBay Executives Fly High with Golden Parachutes   eBay Executives Fly High with Golden Parachutes

by: mindelec This user has validated their user name.

Mon Mar 30 00:32:04 2015

i'm honestly speechless at the insane amount of money these people make for what they do...

Perminate Link for eBay Executives Fly High with Golden Parachutes   eBay Executives Fly High with Golden Parachutes

by: pace306 This user has validated their user name.

Mon Mar 30 00:42:29 2015

.... the vampires once again feeding on their prey.

Introduce "eBay shipping" as to make money off sellers.

Introduce VERO and Trust & Safety to make money off sellers and manufacturers.

Introduce Global Shipping to make MORE money off sellers.

Introduce FORCED returns to make money off sellers.

Introduce advertisments on your listing page to steal, I mean make money on your sellers.

ANYONE see a pattern here?

If eBay wasnt able to get away with stealing from sellers, there wouldnt be any golden parachutes.

Why would the board even hire (to start with) men who have no practical experience in that job? Hiring JD as eBay CEO is akin to asking your garbageman to do your brain surgery.

The stock hasnt increase more then %10 or so, the company is facing threats from every angle (upstarts like 11main, increased pressure from people like Walmart and Barnes & Nobel who have 3rd party marketplaces and even Sears whos doing their own FBA) -  so what HAS the "thinking day man" done foe eBay to deserve even 1 penny of that money? ANYONE?

ALL of them are corrupt - fromt he board on down. There isnt ONE honest person at eBay. No honest person could face such things and voluntarily stay at the company. Working at eBay means you condone the theft and mistreatment they dish out.

EVERY penny they get is stolen from a small seller like yourself (ourselves).  

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by: earn365 This user has validated their user name.
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Mon Mar 30 01:29:45 2015

Now talk about having the touch of midas(golden hanshakes)... Its only a joke to the people getting the bonuses.
http://best-kept-secret.weebly.com/  

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by: NetWatch This user has validated their user name.
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Mon Mar 30 01:46:21 2015

The founder of two social media groups for Former Ebay Sellers has released an eBook on the excesses of eBay execs and other outrages by the Bay. Corporate malfeasance takes on whole new meanings at some online auction sites.

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by: ConnecticutGal This user has validated their user name.

Mon Mar 30 02:42:34 2015

The obscenity is that these guys actually begin to believe that they are worth this kind of compensation.

There are men who run larger, more successful companies who earn far less than these guys.  And there are female CEOs who earn even less than the lower paid male CEOs for equivalent work.

My guess is that these new ebay guys would only come to the company if promised outrageous compensation packages as they see the high risk involved.  

Perminate Link for eBay Executives Fly High with Golden Parachutes   eBay Executives Fly High with Golden Parachutes

by: SusieRose This user has validated their user name.

Mon Mar 30 07:09:30 2015

Something that you didn't mention.  Such separations are usually covered under "key man" insurance policies. So if you think that ebay or paypal are paying out the bonuses out of their pocket, you're wrong.  It's the insurance company.  I was in negotiations for a 5 mil key man policy. If for any reason, the company and the client go their separate ways before the end of the contract, the client gets 2.5 Mil and the company get 2.5 Mil to do with however they want.  Usually the company pays for the next key man policy.    

Perminate Link for eBay Executives Fly High with Golden Parachutes   eBay Executives Fly High with Golden Parachutes

This user has validated their user name. by: Al G

Mon Mar 30 08:12:44 2015

Corporations are not people!

Soylent Green is people!

Ironic.

Perminate Link for eBay Executives Fly High with Golden Parachutes   eBay Executives Fly High with Golden Parachutes

This user has validated their user name. by: FIERCEI
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Mon Mar 30 08:30:50 2015

I'm so glad I jumped off the sinking boat 7 months ago.  Before JD Ebay was a great company! These Executives or running the company into the ground while making millions...

Perminate Link for eBay Executives Fly High with Golden Parachutes   eBay Executives Fly High with Golden Parachutes

by: Joanbet This user has validated their user name.

Mon Mar 30 10:04:50 2015

It is obscene.  There is no other way to look at it... it is obscene.

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by: ebay refugee camp This user has validated their user name.

Mon Mar 30 10:06:19 2015

Donahoe and Swan the lawsuits that will remain and come forward attributed to these two crooks and there is no other word that fits better will be ongoing.
This is what is wrong with America, WALL STREET is fleecing Americans and this must stop.
We will see these two charged with crimes. Tax evasion, SEC violations and anti-trust.
These two have their sites set on BitCoin STAY AWAY!

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