EBay CEO Donahoe chooses to resign

Absrtact: ebay CEO Johandonaho December 19, ebay's Thursday report to the Securities and Exchange Commission (SEC) showed that after the company split online payment business next year PayPal, the incumbent chief executive who chose to leave the company, Johandonaho John

Ebay CEO Donahoe

On December 19, ebay's Thursday filing with the Securities and Exchange Commission (SEC) showed that John Donahoe, the incumbent chief executive who chose to leave office, would be compensated for about 23 million dollars after the company split its online payment business next year, Donahoe.

In addition, Bob Swan, ebay's chief financial officer who chose to leave the Bob Swan, will receive about 12 million dollars in compensation. The final severance payments of the two are likely to change, based on the performance of ebay's share price next year. When ebay announced it would split PayPal this September, Donahoe and Swan said they would opt out after the break-up.

"Donahoe compensation will be closely related to the performance of the company's spin-off phase and its share price movements," said ebay spokeswoman Amanda Miller Amanda Miller. Donahoe and Swan's compensation was approved by ebay's board on December 15.

After splitting PayPal, some of the ebay executives may opt to leave. The documents submitted by ebay show that their severance payments to companies include cash equivalent to 1.5 times times their annual salary.

Donahoe said in the first half of this year that the company will not split PayPal. But by October this year, ebay announced that it would split PayPal. Although ebay's online mall, the company's core business, has contributed more than 30% per cent of PayPal's annual revenue, it is expected to fall to 15% in three years. ebay last year's business revenue of 9.9 billion dollars, more than PayPal's 7.2 billion U.S. dollars, but PayPal growth rate of 19%, more than the ebay 10%.

ebay's business split is expected to be completed in the second half of 2015, after which Donahoe will leave the post of chief executive. Devin Winnig, who is currently in charge of ebay's online mall, will be the independent CEO of ebay, while former American Express executive Daniel Schulmann will take the helm of PayPal.