eBay CEO bags $8.5m in shares sale
eBay CEO and President John Donahoe sold 145,258 eBay Inc.shares for $8,555,754 ($58.90 each) in April.
In February Donahoe exercised options and sold 129,400 shares for $7.1 million ($55). Later in the year, when eBay and PayPal divorce, Donahoe will stand down as eBay Inc. CEO and President but is expected to stay on on one, or even both of eBay and PayPal’s boards. After these sales he owns 457,063 shares of eBay Inc., a stake of less than 1%.
Another eBay exec has also recently cashed in. Alan Marks, senior vice president of corporate communications, is reported to have sold 17,881 shares for $1,052,311 ($58.85 a share).
In a comment to Marketwatch, an eBay spokesman said: “Our executives regularly exercise and sell stock as part of normal financial planning.”
After ten years at eBay, it seems that Donohoe’s options were expiring so it’s not surprising he exercised them and it’s not unusual for execs to take advantages of their perks in such a way.
This man is a disgrace and should have been sacked years ago.
It may not be ‘unusual’ for the executive class in large US & UK corporates to trouser obscene amounts of money for non-performance even against pathetic performance targets but that does not make it right.
Why large shareholders continue to allow the executive class to continue to rob them of their money is quite beyond me.
Unless of course they have a vested interest in keeping the ‘larceny carousal’ going for all the corporate executive class including themselves as well.
Turkeys never vote for Christmas!
eBay’s share price was $25 when he became CEO. Its now $59. Is that really non-performance?
not if you view performance based solely on current share price, no.
however its well known that these things can be manipulated, and a share price based on solid gold soon crashes when the investors find out its a hollow facade.
the recent triple-dip recession following sub-prime mortgage letting would be one such example.
those with an eye to see, can tell ebay is being hollowed out to appear like good value to investors in the short-term, whilst the long-term suffers.
it generally doesnt make good business sense to bury your business for short-term confidence, but if, say, you as the CEO know you’ll be leaving soon, you could use such a tactic to aritificially inflate your own share value, then sell them all off for a huge return. when the price crashes again, it’ll be someone elses problem.
rats all leave a sinking ship, but sell their shares while its still afloat.
There was no “triple dip” recession in the UK. There was no double dip either – it was revised away.
The share price in 2005 was $46; by 2008 (roughly when he came aboard), $25; by 2009, $16. It hit the 2005 figure again in 2012, and isn’t that much more now (considering inflation). In that time, fees trebled – anyone, even a monkey, could treble the cost of doing business but it takes a particular type of stupid to claim that being in the position you were in 10 years ago is a success. Amazon’s figures, BTW, are; $35 in 2005, $80 in 2008, $120 in 2009, and, erm, $427 today. Which one of those is the successful business?
There’s an eye-opening, revealing new eBook out on Amazon about the dark side of ebay: http://www.amazon.com/dp/B00V2UZ0ZC
Oh, Rich. Are you the author?
Please declare the interest when you punt it out on Tamebay.
that’s the share price for eBay inc, which includes paypals growth, ecommerce and mobile payment growth. Ask a seller if sales are improving on eBay. The message boards suggest not and there are more larger sellers saying their sales have declined and they plan to leave.
I’ve a feeling eBay might be in trouble after the split. JD will have gone by then with his 23mil plus and the damage done.
Even their courting of the chinese might not save them. Aliexpress has done something to its delivery, I ordered some items and they arrived really quickly plus the platform is cleaner and easier to buy items, without all the bugs of eBay. Throw in facebook and everything else they’re going to have their work cut out
More cock from the eBay Gods. They reap “perks” from shitting on us all
Now at least we all know where our inflated fees have gone.
Grossely over paid and for what? It sucks!
Long live The Revolution!! :)
its brilliant how short peoples memories are.
nobody remember the .com boom/bust?
the share prices were all fantastic, until everyone noticed it was a hollow bubble that couldnt last.
ebay has some solid feet to stand on (unlike a lot of the .com shockers). the actual sellers selling actual products to actual customers.
– so eBay treats them with utter contempt, til they leave in droves, or sit biting their tongue just waiting for a viable alternative to come along.
– in the meantime the share price has been artificially inflated far beyond what they feet can sustain. off-site advertising, bulk removal of TRS discounts, big staff layoffs, splitting off paypal, and all the other profiteering we’ve witnessed recently, only provide a short-term spike to the share price. the bubble will burst.
the only winners here are John & his buds, and they’re getting ready to jump ship before it goes down.
Unfortunately I am young to remember the .com bubble, as I was only just learning my multiplication tables :(