eBay is one of the largest e-commerce companies in the world. As CEO of eBay, compensation is likely to be quite high compared to the average worker. However, executive pay at public companies is not always straightforward to analyze. Here we will examine the available data on the eBay CEO’s pay package and how it compares to CEOs at similar large corporations.
What was eBay CEO’s total compensation in 2021?
According to eBay’s 2021 proxy statement, the total compensation for CEO Jamie Iannone in 2021 was $30,115,852. This includes his base salary, stock awards, option awards, non-equity incentive plan compensation, and all other compensation.
Breakdown of eBay CEO total compensation
- Base salary: $1,000,000
- Stock awards: $16,242,043
- Option awards: $12,102,410
- Non-equity incentive plan compensation: $749,998
- All other compensation: $21,401
The majority of the CEO’s pay came from stock and option awards. Base salary accounted for only around 3% of total compensation.
How did this compare to the previous eBay CEO?
For comparison, former eBay CEO Devin Wenig stepped down from the role in 2019. In 2018, Wenig’s total compensation was $36,558,159 according to eBay’s proxy statement. This included:
- Base salary: $1,000,000
- Stock awards: $10,244,048
- Option awards: $24,289,836
- Non-equity incentive plan compensation: $1,023,875
- All other compensation: $400
Wenig’s compensation was higher than Iannone’s 2021 pay, mostly due to a higher option award value. However, Wenig’s base salary was the same at $1 million.
How does eBay CEO pay compare to other large companies?
To provide context, here is a comparison of 2021 CEO compensation at some other large tech and e-commerce companies:
Company | CEO | Total Compensation |
---|---|---|
eBay | Jamie Iannone | $30,115,852 |
Alphabet (Google) | Sundar Pichai | $6,322,636 |
Walmart | Doug McMillon | $25,653,968 |
Amazon | Andy Jassy | $212,001,769 |
This shows that the eBay CEO’s pay is high compared to other technology companies like Alphabet. However, it is much lower than compensation given to the CEOs of Walmart and Amazon. The very high pay awarded to new Amazon CEO Andy Jassy in 2021 skews the comparison.
How has eBay CEO pay changed over time?
Looking further back, here is the total compensation data for eBay’s CEOs over the last decade:
Year | CEO | Total Compensation |
---|---|---|
2021 | Jamie Iannone | $30,115,852 |
2020 | Jamie Iannone | $23,572,388 |
2019 | Scott Schenkel (interim) | $987,327 |
2018 | Devin Wenig | $36,558,159 |
2017 | Devin Wenig | $43,528,165 |
2016 | Devin Wenig | $12,974,313 |
2015 | John Donahoe | $8,607,775 |
2014 | John Donahoe | $7,394,971 |
2013 | John Donahoe | $27,961,201 |
2012 | John Donahoe | $29,689,131 |
Devin Wenig’s compensation jumped to over $35 million per year during his tenure as CEO from 2015-2019. Prior CEO John Donahoe also had over $25 million in total pay some years. The interim CEO in 2019 had much lower compensation.
How is eBay CEO pay determined?
As an executive of a public company, the eBay CEO’s compensation is set by the board of directors. It is based on factors like:
- Base salary
- Short-term cash incentive bonuses tied to financial metrics
- Long-term stock awards
- Compensation benchmarks of peer companies
Cash bonuses and equity awards are designed to reward strong company performance. eBay uses adjusted earnings per share, revenue growth, relative total shareholder return and other financial metrics to determine the CEO’s variable compensation each year.
What is included in “all other” compensation?
“All other compensation” is additional compensation beyond salary, bonuses and equity awards. For the eBay CEO this has included:
- 401(k) plan matching contributions
- Life insurance premiums
- Personal use of company aircraft
- Relocation assistance
- Home security
These perks and benefits accounted for about $21,401 of the CEO’s total pay in 2021.
How much eBay stock does the CEO own?
In addition to compensation, CEOs often accumulate significant stock ownership in their company. Jamie Iannone owned 225,309 shares of eBay stock as of March 2022 according to SEC filings. At eBay’s current share price, this equity stake is worth around $12.9 million.
Former eBay CEO Devin Wenig owned around 1 million eBay shares when he departed, worth about $38 million at the time. The significant stock and option awards CEOs receive each year allow them to build up sizable shareholdings over time.
Conclusion
In summary, the eBay CEO receives multi-million dollar compensation packages, but less than the very highest paid tech CEOs like those at Amazon or Apple. Much of the pay comes in the form of stock awards, aligning the CEO’s incentives with shareholder returns. Compensation peaked in the high tens of millions during Devin Wenig’s tenure as CEO, but has moderated under the new leadership of Jamie Iannone. While still generous compared to average worker pay, the eBay CEO’s total compensation reflects the complex task of managing a $28 billion global e-commerce business.