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Technology

EBay Pays For PayPal, Marketplaces Heads To Stay Through Spinoff

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EBay Pays For PayPal, Marketplaces Heads To Stay Through Spinoff

EBay Inc. is paying up for two top executives to take it through the break-up of the company.

The San Jose, California-based online retail and payments company said in a filing yesterday that it will give new PayPal president Daniel Schulman a base annual salary of $900,000, equity awards valued at as much as $18 million, plus as much as $29.1 million to make up for forgoing compensation from his previous employer, American Express Co.

The company said it would also pay EBay marketplaces chief Devin Wenig the same base salary as Schulman. Since Wenig isn’t joining from another company, he will get different equity compensation valued at as much as $4 million, according to the filing. Wenig received total compensation of $6.7 million last year, according to data compiled by Bloomberg.

EBay disclosed the new pay packages as it moves to split up the company into a stand-alone marketplaces division and an independent payments business. Chief Executive Officer John Donahoe unveiled the plan earlier this week, saying he wouldn’t take an executive role at the companies after the spinoff. Instead, Wenig and Schulman will become CEOs of EBay and PayPal respectively once the separation is completed by the end of 2015.

Schulman was previously president of American Express’s enterprise growth group. He also has worked at Sprint Nextel Corp., AT&T Inc. and Priceline Group Inc. Wenig joined EBay in 2011 and previously worked at Thomson Reuters Corp.

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If both men stay through the spinoff and beyond, their compensation is set to increase. Base salaries for the executives will rise to $1 million a year, with target bonuses jumping to 200 per cent of the base salary, up from 175 per cent currently, according to the filing. Equity awards vest over four years, the filing said.

Donahoe’s 2013 compensation totaled $13.8 million in cash and stock, down 53 per cent from the previous year, when he received a large stock award.

Bloomberg, edited by ESM

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