When eBay and PayPal split, it doesn’t appear as though the salaries of its top executives will be taking a hit.
When eBay’s CEO John Donahoe steps down later this year, putting into place Devin Wenig — eBay’s current president of eBay Marketplaces — Wenig will be receiving a similar salary to Donahoe, according to Bloomberg. Donahoe made $14.1 million in 2014, and Wenig’s total compensation will be $14 million post-split. Dan Schulman, formerly of American Express, will become CEO of PayPal and will also receive $14 million in compensation. Both CEOs will receive a $1 million salary, with $13 million in cash bonuses and equity awards, Bloomberg reported.
While the CEOs will keep their executive-level salaries, as eBay splits off PayPal, the online marketplace company will prepare to layoff somewhere in the range of 3,000 employees (about 10 percent of its workforce). Donahoe plans to quit the eBay board when the companies split and move solely to the PayPal board when the split occurs.
“Donahoe’s decision is being influenced in part by a desire to give current eBay executive Devin Wenig — who will become CEO upon the split — the freedom to run the company as he sees fit without having to answer to his former boss,” Re/code reported in December, citing an anonymous source.
The eBay/PayPal split announcement came last September when Carl Icahn, eBay’s largest shareholder, demanded that PayPal split from eBay, saying PayPal’s growth was being halted by eBay. According to Bloomberg, eBay paid Schulman $38 million, but $22 million of that had to go to Amex as a result of his departure to eBay.
EBay CEO John Donahoe will collect an estimated $23 million when he leaves the company. CFO Bob Swan will get an exit package worth about $12 million at the same time. Both Donahoe and Swan said in September of last year, when eBay announced its planned split with PayPal, that they will step down from their current roles at eBay.