eBay's CEO was the highest compensated of his immediate peers in 2020. Jamie Iannone, who became CEO of eBay on April 27 of last year, received $35 million in total compensation in 2020. That compares to nearly $1.7 million for Amazon CEO Jeff Bezos and $1.9 million for Etsy CEO Josh Silverman (or $7 million if you take into account Silverman's front-loaded grant - more on that below).
Since 2018, public companies have been required to report the CEO Pay Ratio metric, which highlights the discrepancy between CEO and average employee compensation.
Comparing eBay and Etsy to Amazon is comparing apples to oranges, however, since Amazon operates not just an online marketplace and cloud-hosting services, but a logistics operation that includes low-wage employees, such as warehouse workers.
In addition, Amazon CEO Jeff Bezos takes a low base salary (not even reaching six figures), and compensation of only $1.6 million, which "represents the approximate aggregate incremental cost to Amazon of security arrangements for Mr. Bezos in addition to security arrangements provided at business facilities and for business travel." The company notes that the CEO, who founded Amazon and thus has equity in the company, has never received any stock-based compensation.
*The annual total compensation of Etsy CEO Josh Silverman, was $1,934,307. Note that he did not receive long-term incentive grants in 2018, 2019 or 2020 in light of the front-loaded grant he received in May 2017 that was intended to induce him to join Etsy and align his interests with those of shareholders. If adjusted for the four-year period that his sign-on equity awards were intended to cover and instead included 25% of the total value of his sign-on equity awards as 2020 compensation, his 2020 annual total compensation would have been $7,067,871, making the ratio 37:1.
Note for eBay: Median employee: salary, target bonus and target annual equity awards.
eBay had 12,500 employees as of November 6, 2020, with approximately 5,900 employees located in the United States and 6,600 employees elsewhere. In calculating median employee compensation, eBay excluded 549 employees in 17 jurisdictions, as permitted under a de minimis exemption, basing the figure on approximately 12,000 employees.
Note for Amazon: Median compensated employee: salary, bonus, and grant date fair value of RSUs granted for all full- and part-time permanent and temporary employees worldwide as of October 1, 2020. It also annualized compensation for employees who did not work the entire year, except for employees designated as seasonal or temporary.
Note that Amazon also disclosed the median employee compensation was $37,930 for all US full-time Amazon employees.
Note for Etsy: Median employee: base compensation, employee bonuses, and the value of equity awards granted for all full-time, part-time, and temporary employees as of December 31, 2020.
What would be even more intriguing is if there were a way to represent average seller revenue.