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!