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eBay cuts chief executive John Donahoe's pay by 53% | eBay cuts chief executive John Donahoe's pay by 53% |
(about 21 hours later) | |
E-commerce giant eBay has cut the total compensation of its chief executive, John Donahoe, by more than half. | E-commerce giant eBay has cut the total compensation of its chief executive, John Donahoe, by more than half. |
Mr Donahoe was paid $13.8m (£8.3m), including salary and bonus, in 2013, down from $29.7m a year ago. | Mr Donahoe was paid $13.8m (£8.3m), including salary and bonus, in 2013, down from $29.7m a year ago. |
While his basic salary rose by 2%, Mr Donahoe's annual cash incentive fell by 43% from a year earlier. | While his basic salary rose by 2%, Mr Donahoe's annual cash incentive fell by 43% from a year earlier. |
The company said that while their chief executive had performed well, the firm's financial performance "did not fully meet expectations". | The company said that while their chief executive had performed well, the firm's financial performance "did not fully meet expectations". |
EBay generated earnings of about $850m in the final quarter of last year - an increase of 13% - but its results have not been meeting expectations. | |
Paypal spin-off | Paypal spin-off |
However, the main explanation for the severity of Mr Donahoe's pay cut is his one-time award of $14.8m in performance shares in 2012, which doubled his compensation that year. | However, the main explanation for the severity of Mr Donahoe's pay cut is his one-time award of $14.8m in performance shares in 2012, which doubled his compensation that year. |
His sharp drop in pay comes amid an ongoing battle between the firm and activist shareholder Carl Icahn over its online payments business, Paypal. | |
Mr Icahn has called on eBay to spin off Paypal, which it acquired in 2002 for $1.5bn (£905m) | |
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. | 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. | The division accounts for nearly 40% of the firm's total revenue. |
Mr Icahn, who owns more than 2% of eBay's shares, has also nominated two people to eBay's board. | Mr Icahn, who owns more than 2% of eBay's shares, has also nominated two people to eBay's board. |
However, on Monday eBay said that its board of directors "does not endorse any Icahn Group nominee or the Icahn proposal". | However, on Monday eBay said that its board of directors "does not endorse any Icahn Group nominee or the Icahn proposal". |
It also urged shareholders to vote against the nominees put forward by him. | It also urged shareholders to vote against the nominees put forward by him. |