Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Wed May 5 2021 20:33:40

Marketplaces Reveal CEO Compensation: eBay, Amazon, Etsy

By: Ina Steiner

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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.



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Perminate Link for Marketplaces Reveal CEO Compensation: eBay, Amazon, Etsy   Marketplaces Reveal CEO Compensation: eBay, Amazon, Etsy

by: pace306 This user has validated their user name.

Thu May 6 09:08:51 2021

35 million for stealing from sellers - its no wonder he left Walmart!

Perminate Link for Marketplaces Reveal CEO Compensation: eBay, Amazon, Etsy   Marketplaces Reveal CEO Compensation: eBay, Amazon, Etsy

by: mazelgirl This user has validated their user name.

Thu May 6 10:05:25 2021

35 million is just a stupid amount. He's just an employee.  Salaries like this are what is going to destroy the USA.  I'm glad I'm old.

Perminate Link for Marketplaces Reveal CEO Compensation: eBay, Amazon, Etsy   Marketplaces Reveal CEO Compensation: eBay, Amazon, Etsy

by: careerseller This user has validated their user name.

Thu May 6 10:07:09 2021

What can you say, eBay runs a successful Mafia ...  

Perminate Link for Marketplaces Reveal CEO Compensation: eBay, Amazon, Etsy   Marketplaces Reveal CEO Compensation: eBay, Amazon, Etsy

by: I Must be Crazy This user has validated their user name.

Thu May 6 13:04:36 2021

Jamie Iannone and the entire board should be embarrassed and ashamed of themselves. I am embarrassed for them!

It is an outrageous waste of resources that amounts to nothing short of theft. The institutional investors in eBay should take this information and demand an explanation of what in the heck is going on. And then, start the process of forcing a sale of the company to an entity that is capable of running it. That is the only way they are going to increase the value of their holdings.

This confirms what I believe has been happening for a long time in corporate America. There are a number of incapable and ineffective ''leaders'' that troll around bouncing from company to company, pilfering millions along the way. They choose poor performing companies, where the expectations are low, do nothing and pocket tens of millions of dollars.

Ebay has long been among the most poorly managed and poor performing ecommerce company in existence. There is no reason why the that drip Iannone shoud be collecting a higher base + comp than Bezos or Silverman.

Perminate Link for Marketplaces Reveal CEO Compensation: eBay, Amazon, Etsy   Marketplaces Reveal CEO Compensation: eBay, Amazon, Etsy

This user has validated their user name. by: Rexford

Thu May 6 13:25:02 2021

"Any monkey can drive this train".  There is only one requirement-- must possess soul stealing greed.

Perminate Link for Marketplaces Reveal CEO Compensation: eBay, Amazon, Etsy   Marketplaces Reveal CEO Compensation: eBay, Amazon, Etsy

This user has validated their user name. by: toolguy

Fri May 7 09:34:37 2021

I have NO problem with the CEO of eBay making $35 million

What I do have a problem with is "eBay Lies"

I'll never trust them ever again, they are a necessary evil in my life right now.

But that will change over the next few months. . . . .

Perminate Link for Marketplaces Reveal CEO Compensation: eBay, Amazon, Etsy   Marketplaces Reveal CEO Compensation: eBay, Amazon, Etsy

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

Sun May 9 22:56:36 2021

Gross overpayment of money for a do nothing CEO.  Under his leadership Ebay continues to have glitches which make unearned money for them because they do not know how to allow sellers to help them grow their business like the original designer of Ebay did.  Everything is looked at in the short term as if they are only going to be there for a short period of time so they continue to steal from their customers (Sellers really are your customers Ebay although you refuse to acknowledge it) as much as possible to show some type of growth.  Then they wonder why their stock continues to flounder while all the other platforms are watching their stock prices soar.  That must be a big disappointment to not only the BOD but those that were stupid enough to have invested in Ebay thinking that they could make some money with a company that used to be synonymous with being the top Ecommerce site there was.



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