Former eBay CEO John Donahoe has landed a gig as CEO of ServiceNow. The cloud-computing company provides services to enterprises - in fact, Donahoe revealed eBay was a customer of ServiceNow during this interview
with CNBC on Monday.
Donahoe's new annual base salary of $625,000 is less than the $1 million salary he earned his last full year at eBay (2014). But as with his gig at eBay, that's a small percentage of the total compensation he'll receive.
In 2014, Donahoe received $14 million in total compensation at eBay counting salary, performance bonus and equity awards.
At ServiceNow, he will also receive an annual performance-based cash bonus, with a target amount equal to 100% of his base salary based on performance measures, as well as a substantial equity awards package in the tens of millions of dollars (subject to vesting): a New-Hire RSU, an Additional RSU, a New-Hire Option and an Initial PRSU.
The 5-year employment contract makes no mention of a corporate jet, a perk Donahoe received while serving as eBay CEO (it's not clear if ServiceNow has its own jet).
And as with his job at eBay, he gets a lucrative "parachute" package if he is terminated without cause.
Donahoe will have a more experienced and possibly more hands-on overseer in the form of the President and CEO he is replacing, Frank Slootman, who will continue as Chairman of the Board. That will be a new experience for Donahoe after working with hands-off chairman Pierre Omidyar who founded eBay in 1995.
Donahoe will join the ServiceNow board on April 1st, and it appears he will continue to serve as Chairman of the Board at PayPal, a role he assumed in 2015 after the breakup of eBay Inc.