The abrupt departure of eBay CEO Devin Wenig last month apparently left its board of directors scrambling. They named an interim successor but without negotiating a compensation package.
Over 2 weeks after naming Scott Schenkel interim CEO, eBay entered into a letter of agreement with the executive who had been the company’s Chief Financial Officer. eBay did likewise with Andrew Cring, who was named interim Chief Financial Officer, taking over for Schenkel.
Schenkel and Cring will receive a monthly performance bonus equal to $125,000 and $70,000, respectively, for each month they serve in their new roles. In addition, they were granted performance-based restricted stock units (PBRSUs) and restricted stock units (RSUs). (That’s on top of their base salaries and other compensation they received in their regular positions.)
No specific reason was given for Wenig’s abrupt departure announced on September 25. The Chairman of the Board for eBay stated: “given a number of considerations, both Devin and the Board believe that a new CEO is best for the Company at this time.”
Wenig posted a series of tweets starting with, “In the past few weeks it became clear that I was not on the same page as my new Board. Whenever that happens, its best for everyone to turn that page over. It has been an incredible privilege to lead one of the worlds great businesses for the past 8 years.”
In its letter of agreement with Schenkel, eBay raised security concerns, writing, “Finally, as Interim Chief Executive Officer, you will also be encouraged to use the corporate airplane for personal travel to reduce possible security concerns where relevant, in accordance with eBay’s policy as described in the most recent annual proxy statement.”
eBay’s Chief People Officer Kristin Yetto ended the letter with a thank you from the entire eBay team for his “willingness to serve during this transitional time.” She likewise thanked Andy Cring in his letter of agreement.
See details in the company’s filing with the SEC.
Perhaps I am not understanding, but every place I have worked or heard about, “Performance Bonuses’ are given if there is in fact a certain degree of performance past the usual job that they get a base salary for doing what they are hired to do. Not to make it sound like if they sit at their desks all day playing pickup sticks they will get it or like Donut-hole and his ‘thinking days’ twice a month for that he got paid so much for, how can you pay a bonus for what someone is thinking in their head? Bonuses are paying for excelling, for going way past a targeted goal for the company such as a bonus for increasing income 10% or some sort of criteria instead of just saying hey, on top of what you are going to make, and your benefits and free drinks at the Walker bar, you will also get a bonus without you having to hit any measurable outcomes. The $125,000 bonus becomes $1,500,000 over the course of a year or to put it simply $4109 per day including Saturdays and Sundays. This guy will be paid a small fortune to find more ways to makes sellers poorer and poorer, while eBay continues to line the pockets of these guys. And that is what they earn the bonus for by finding more money to put into executives pay kitty while stealing it from sellers who can’t stop selling as long as they are making something as they need what little income they get to pay for so they can eat and keep the lights on. I don’t care how much is the usual and customary income for CEO’s, this is ridiculous and I didn’t even include all the stock options as well. I worked as an RN until I had to go on disability and I never even made $4000/month and I literally have saved people’s lives and helped people walk out of the hospital instead of needed to be wheeled out, and yet my service was never considered to be more important than these jokers. How do I apply to be CEO? At least I understand and have bought and sold on eBAY.
overpaid out of touch morons
We have to erase these blood sucking leaches OUT of our selling venues.
Pass a Law.
That’s a hell of a bonus for doing nothing to improve sales.