eBay’s Schulman and Wenig will get $14 million in annual pay after the split
March 24, 2015 09:40 AM
(Bloomberg)—EBay Inc., which is spinning off its PayPal division later this year, plans to pay each of the two new companies’ chief executives $14 million in total compensation after the split.
Dan Schulman, who joined the digital-payments unit from American Express Co., will be CEO of the standalone PayPal, the company said in September. Devin Wenig, who is now president of the Marketplaces division, will become CEO of eBay post-breakup. They will both get an annual salary of $1 million following the spinoff, plus cash bonuses and equity awards of as much as $13 million, the San Jose, California-based company said Monday.
EBay announced the split after coming under pressure from activist investor Carl Icahn, who argued that PayPal was being held back by its connection with eBay’s slower-growing online retail business. To lure Schulman to PayPal, EBay paid him $38 million, $22 million of which was a make-good payment for money Schulman was required to repay American Express and other compensation he forfeited by coming to eBay.
EBay CEO John Donahoe’s 2014 pay totaled $14.1 million, compared with $13.8 million the previous year.