EBay Chiefs to Quit Post PayPal Spinoff, Earn $35M on Exit - Analyst Blog

In line with a regulatory filing, five of eBay Inc. 's ( EBAY ) top executives will step down following the spinoff of its payment-processing unit PayPal next year. The departure of the employees will cost the company more than $35 million.

Golden Parachute

Golden Parachute implies a hefty payment or financial recompense guaranteed to an employee if dismissed following a structural change in the company.

eBay CEO John Donahoe, who will hand in his papers post the spinoff, will receive around $23 million, as per Forbes estimates.

Donahoe, who has been working with eBay for more than six years, will be given a severance package comprising cash payment equivalent to two times his yearly base salary and the acceleration of all restricted stock units (RSUs) and stock options.

Also, CFO Bob Swan will be compensated in a similar fashion on his departure. His exit package is estimated to be around $12 million.

The golden parachutes, however, will depend on eBay's performance and stock price at the time of the split.

Senior Vice President and General Counsel Michael Jacobson; Senior Vice President of Global Human Resources Beth Axelrod; and Senior Vice President of Corporate Communications Alan Marks are also entitled to such compensations. Their bonuses will be equal to 1.5 times their annual pay and bonus.

Post PayPal spin-off, eBay will have Devin Weing as its CEO. Weing is currently the president of eBay Marketplaces.

Meanwhile, Dan Schulman, will become the CEO of the new PayPal payments company.

eBay currently carries a Zacks Rank# 3 (Hold). Better-ranked stocks in this industry include Geeknet, Inc. ( GKNT ), Mercadolibre, Inc. ( MELI ) and Solutions, Inc. ( OSTK ). All of them carry a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

EBAY INC (EBAY): Free Stock Analysis Report

OVERSTOCK.COM (OSTK): Free Stock Analysis Report

MERCADOLIBRE IN (MELI): Free Stock Analysis Report

GEEKNET INC (GKNT): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


Latest Markets Videos


Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

Learn More