eBay Cuts Cheif Executive’s Pay in Half
eBay, the largest online marketplace, said Chief Executive Officer John Donahoe received $13.8 million in total compensation last year, a 53% drop from 2012, when he was granted a large stock award. Mr Donahoe was paid $13.8m (£8.3m), including salary and bonus, in 2013, a 53 percent drop from 2012, when he was granted a large stock award.While his basic salary rose by 2%, Mr Donahoe’s annual cash incentive fell by 43% from a year earlier.
The CEO’s cash incentive bonus was paid at 82 percent of EBay’s target because the company fell short of its 2013 financial goals and didn’t meet expectations for to its competitors at the start of 2014, according to the filing with the U.S. Securities and Exchange Commission.Donahoe has been under fire from activist investor Carl Icahn, who wants EBay to spin off or sell its PayPal electronic-payments unit which it acquired in 2002 for $1.5bn (£905m) and is nominating two candidates to the board. In the filing today, EBay recommended share holders reject Icahn’s proposal and nominees at the annual meeting
It has been a key driver of eBay’s growth as an increasing number of consumers turn to online shopping, prompting increased use of online payment services. The division accounts for nearly 40% of the firm’s total revenue.
In his own letter to shareholders today, Icahn reiterated his call for a separation of PayPal and repeated his allegation that Donahoe sold videoconferencing service Skype for too low a price in 2009. Icahn, whose affiliates hold a stake in EBay of about 2.2 percent, has also targeted board members Marc Andreessen and Scott Cook, accusing them of conflicts of interest.
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