Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Sat May 23 2020 16:16:30

Former eBay CEO Walks Away with $57 Million Package

By: Ina Steiner

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Former eBay CEO Devin Wenig walked away with a $57 million package last year, according to a company filing with the SEC (Securities & Exchange Commission). Of that, $780,769 was salary and $40 million was classified as "other compensation."

Wenig left the company abruptly on September 24 under ambiguous circumstances. At the time, eBay Chairman of the Board Thomas Tierney cited "a number of considerations," and Wenig said in a Tweet he was "not on the same page" as the Board. (Tierney himself will be stepping down from the eBay Board in June where he's served as Director since 2003 and Chairman since 2015.)

Whatever the circumstances of Wenig's departure, the May 20, 2020, filing shows the eBay Board considered his exit as "termination without cause" when evaluating the terms of his 2014 letter agreement with the company, sometimes referred to as Golden Parachute provisions. The terms are spelled out in the filing:

"The Letter Agreement payments include: (i) two times his annual base salary which equals $2,000,000; (ii) two times his annual target bonus amount which equals $4,000,000; (iii) a prorated portion of the bonus under the eBay Incentive Plan (โ€œeIPโ€) that Mr. Wenig otherwise would have earned and been paid (using his accrued eligible compensation under the eIP through the last day of employment) for the 2019 fiscal year under the eIP which equals $1,819,192 (which is reflected in the โ€œNon-Equity Plan Compensationโ€ column of the Summary Compensation Table); (iv) the amount of $5,849,674, which is the dollar value of outstanding and unvested RSU awards that were treated as vested under the Letter Agreement; (v) the amount of $27,357,280, which is the dollar value of outstanding and unvested PBRSU Awards that were treated as vested under the Letter Agreement; and (vi) the amount of $545,288, which is the dollar value of dividend equivalents associated with the equity awards that were treated as vested under the Letter Agreement."

The report broke out the following expenses that were part of Wenig's compensation in 2019:

- In-home security expenses: $4,260

- Secured chauffeured transportation: $26,303 

- Personal airplane usage: $230,904 

The same filing shows eBay's CEO Pay ratio, which we report each year. The median annual total compensation for eBay employees in 2019 was $130,636. The board chose to exclude Wenig's compensation and chose not to annualize the higher compensation Schenkel received during his role as Interim CEO. Instead it used Schenkel's actual total compensation for the year of $17,647,255 - including his nearly 9 months as Chief Financial Officer.

The ratio of the Schenkel's annual total compensation to the median employee's annual total compensation is 135 to 1. For 2018, the eBay CEO Pay Ratio had been 152.

Given the information provided in the report, we calculated that Devin Wenig received in compensation 438 times the median employee's annual total compensation in 2019.

It's also interesting to note that the median annual total compensation for eBay employees was 9.26% higher in 2019 - $130,636, compared to $119,562 in 2018.



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Perminate Link for Former eBay CEO Walks Away with $57 Million Package   Former eBay CEO Walks Away with $57 Million Package

by: Shanna This user has validated their user name.

Sat May 23 19:38:34 2020

Holy Shanoozle! Definitely overcompensating for something.

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This user has validated their user name. by: toolguy

Sat May 23 19:39:07 2020

WOW!

Donahoe only got $23 million on the way out. . . . .

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by: justchangecarriers This user has validated their user name.

Sat May 23 20:29:19 2020

blows my mind how someone can do a bad job. get fired and get 40 million dollars on the way out. Really is just an inner circle of musical chair CEO jobs.  

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by: pace306 This user has validated their user name.

Sat May 23 21:36:12 2020

Do a crap job over on eBay, make alot of money.

Just how many sellers did eBay have to steal from to get that kinda cash?

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by: AgendaSwallowsAll This user has validated their user name.

Sat May 23 22:00:23 2020

Hush Money

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This user has validated their user name. by: Covid-20

Sat May 23 23:04:25 2020

๐—›๐—ฎ๐—ฟ๐—ฑ ๐˜๐—ผ ๐—ฏ๐—ฒ๐—น๐—ถ๐—ฒ๐˜ƒ๐—ฒ ๐—ป๐—ผ๐˜ ๐—ข๐—ก๐—˜ ๐—ฝ๐—ฒ๐—ฟ๐˜€๐—ผ๐—ป ๐—ต๐—ฒ๐—ฟ๐—ฒ ๐—ธ๐—ป๐—ผ๐˜„๐˜€ ๐—ฎ ๐—ท๐˜‚๐—ป๐—ธ๐˜†๐—ฎ๐—ฟ๐—ฑ ๐—ฑ๐—ผ๐—ด ๐—น๐—ฎ๐˜„๐˜†๐—ฒ๐—ฟ ๐˜„๐—ถ๐—น๐—น๐—ถ๐—ป๐—ด ๐˜๐—ผ ๐˜€๐—ป๐—ถ๐—ณ๐—ณ ๐—ฎ๐—ฟ๐—ผ๐˜‚๐—ป๐—ฑ ๐—ถ๐—ป๐˜๐—ผ ๐˜๐—ต๐—ฒ ๐—ฒ๐˜€๐—ฐ๐—ฎ๐—ฝ๐—ฎ๐—ฑ๐—ฒ๐˜€ ๐—ผ๐—ณ ๐˜๐—ต๐—ถ๐˜€ ๐—ฐ๐—ผ๐—บ๐—ฝ๐—ฎ๐—ป๐˜† ๐—ผ๐—ฟ ๐—ถ๐˜๐˜€ ๐˜€๐—ต๐—ฎ๐—ฑ๐—ฒ๐—ฑ ๐—ผ๐—ฟ๐—ด๐—ฎ๐—ป๐—ถ๐˜‡๐—ฒ๐—ฑ ๐—ฐ๐—ฟ๐—ถ๐—บ๐—ฒ-๐—น๐—ถ๐—ธ๐—ฒ ๐˜๐—ต๐—ฒ๐—ฎ๐˜๐—ฟ๐—ถ๐—ฐ๐˜€ . . . .  

Perminate Link for Former eBay CEO Walks Away with $57 Million Package   Former eBay CEO Walks Away with $57 Million Package

by: Silver Ice King This user has validated their user name.

Sat May 23 23:05:36 2020

How could his termination have been considered without cause??  He was running the company into the ground and when the BOD finally stepped up and was suddenly on a different page than Wenig he suddenly quits!!  That payoff is hush money pure and simple which I think is the reason that Tierney is suddenly leaving Ebay also.  I always thought that Wenig had something on the BOD members to get away with the poor performance that he continued to show every quarter and this payoff and Tierney leaving just confirms to me that I was right all along.  It will be interesting to see how much of a payoff Tierney gets when he is finally out as well as the temporary CEO that is also leaving in June.

It really seems funny that all of those that were in upper management and long term board members are suddenly bailing after being forced to find a permanent CEO and also disclose just how much money that Wenig stole from that company when he left. That is a ridiculous amount of money for Wenig to have received from Ebay for his golden parachute after the poor performance he has given the shareholders and Sellers from whom Ebay stole all of that money.  He did not deserve to walk out of that company with anything more than he had already been paid based on the pathetic job he did not only as the CEO but his entire time working for Ebay. In fact he probably should have had to return most of what he earned during that time based on what shareholders received as a return on investment while he ran the company.,   I would love to see his wife divorce him now and take at least half of what he has so he can see what it is like to deal with a thief.

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by: AgendaSwallowsAll This user has validated their user name.

Sun May 24 00:38:18 2020

Now I know why eBay Bucks promotions have been 5 percent as of late

Perminate Link for Former eBay CEO Walks Away with $57 Million Package   Former eBay CEO Walks Away with $57 Million Package

by: mjr55 This user has validated their user name.

Sun May 24 02:03:01 2020

SCREW this guy with a rusty nail.....and I'm keeping it PG.

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by: notfunanymore This user has validated their user name.

Sun May 24 06:57:14 2020

All on the backs of sellers!!  This disgusts me at every level. He walks away with 53 million, sellers are barely able to pay the bills..  once you leave this corrupt venue your eyes open, you realize what is going on here. Itโ€™s not only them itโ€™s every bit of corporate America. Take your life back before they suck every dollar from you on a slow painful drip

Perminate Link for Former eBay CEO Walks Away with $57 Million Package   Former eBay CEO Walks Away with $57 Million Package

This user has validated their user name. by: toolguy

Sun May 24 09:59:54 2020

But neither of the "boys" got even close to what Meg Whitman got.

She left eBay with over $$$$--->BILLION<---$$$$

Perminate Link for Former eBay CEO Walks Away with $57 Million Package   Former eBay CEO Walks Away with $57 Million Package

by: RL15 This user has validated their user name.

Sun May 24 10:02:09 2020

for $57 million, the sellers who continue to list on the cesspool get mangled payments.

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by: ShortSeller This user has validated their user name.

Sun May 24 14:52:22 2020

And now you know why they are focused on increasing margins. All the money goes to the execs or gets poured back into buybacks so the key shareholders get their piece. Ebay is being pimped out, plain and simple.

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by: COVID-19 This user has validated their user name.

Sun May 24 19:53:38 2020

Simply disgusting.  Now you know why working class people hate CEOs.  How could a CEO be a failure and get bonuses and "compensations"?

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This user has validated their user name. by: toolguy

Sun May 24 21:11:21 2020

@COVID-19

How do you figure Wenig was a "failure"?

He boosted the companies market cap and sold StubHub for a huge profit.

I think he got too much, There's no way he should've got more then the Hoe did. . . .

Perminate Link for Former eBay CEO Walks Away with $57 Million Package   Former eBay CEO Walks Away with $57 Million Package

by: Silver Ice King This user has validated their user name.

Sun May 24 23:57:34 2020

@Toolguy


Ebay may have sold Stub Hub but it was not Wenigs choice or even what he wanted to do with it.  He neither arranged for the purchase of it and nor the sale of it as he was gone by that time.  I am sure that he dragged his feet on Selling Stub Hub as long as possible as that was the idea of activist investor Elliott who Wenig definite did not see eye to eye with. Stub Hub had also been Ebays cash cow which helped Wenig cover up his incompetence.

Investors got basically nothing in return on their investments during Wenigs time, other than an on site Bar that he had built to remind him of his favorite bar in New York.  A complete and worthless use of Ebays cash.  When Wenig took over Ebay had around $9.5 billion parked offshore to just over $3 billion in cash and had nothing other than an AI company in Israel that was unable to generate any ROI to speak of and a replica of his favorite bar in New York, Walkers West, which he built as his legacy on Ebays San Jose campus.  In fact Ebay actually showed a huge loss for the 2017 Fiscal Year.  Wenig should have given back money to Ebay in order to be allowed to leave and not face the music that evidently all the others see coming as their seems to be a large scale exodus higher ups  from Ebay recently as all the rats are leaving what can only be called a sinking ship at this point in time.

Perminate Link for Former eBay CEO Walks Away with $57 Million Package   Former eBay CEO Walks Away with $57 Million Package

This user has validated their user name. by: DeathFromAbove

Mon May 25 00:13:09 2020

Pretty much vomit inducing.  "Great depression 2?  What do you mean great depression 2?  I have 80 million dollars in the bank!  Not my fault you don' thave an emergency fund?"

Some sort of illuminati arrangement and this guy really is some genius of next-level, or soul was sold to the devil.  Which is it?

Perminate Link for Former eBay CEO Walks Away with $57 Million Package   Former eBay CEO Walks Away with $57 Million Package

This user has validated their user name. by: DeathFromAbove

Mon May 25 00:19:58 2020

...and this guy still posts on twitter like he has something of value to say to anyone.  has he no shame?

Perminate Link for Former eBay CEO Walks Away with $57 Million Package   Former eBay CEO Walks Away with $57 Million Package

by: BargainzBabylon This user has validated their user name.

Mon May 25 00:36:50 2020

Well, maybe he can use some of the money to improve his wardrobe.  

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by: Moonwishes This user has validated their user name.

Mon May 25 01:51:54 2020

>> the amount of $545,288, which is the dollar value of dividend equivalents associated with the equity awards that were treated as vested under the Letter Agreement."<<

Maybe I am dumb and just don't understand, well actually I don't understand most of this letter of agreement where a CEO can walk in do a horrible job for as many years as he wants and then leave with all this pay as a pat on the back. But this equity awards and dividends has me scratching my head. I was not aware that eBay paid dividends on their shares of stock to stockholders. Is he and other eBay bigwigs the only ones getting dividends on eBay stock? Maybe they are talking about some other investments that pay dividends?

Can I please be CEO for a week and walk away with a couple of million? Most of us would be happy to make that kind of money. I am just very glad that I didn't help earn that money for him as I abandoned eBay long ago.

Ina - I would love to see you guys doing an article in words we can maybe understand about what each of these line item amounts mean. Do all CEO's get these types of compensation packages when they leave?

I am not jealous as I feel very blessed as we have not fallen behind in our bills during this time as our online sales have been great, that plus a SS check means we put food on the table etc. I can't even conceive of what one family could use all this sort of money for. I know I personally would be giving a lot away to those in need. But When other CEOs have left, you have published these articles and I know that especially I would like to know what they really mean and how they are calculated and how a stock that doesn't pay dividends to people that have actually PAID to OWN the stock, pays out over half a million to someone that was given the stock since he certainly didn't buy them or earn them.

This sort of compensation is despicable especially for a guy that just continued to run the company into the ground. Maybe though they feel it is good business to pay out all the money that eBay has tucked away, before they do go bankrupt and creditors and stock holders get paid out. I don't know. I never went to school at Bain.

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