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EBay Cuts CEO's Pay Package in 2005

April 13, 2006|From Bloomberg News

EBay Inc. cut Chief Executive Meg Whitman's pay to $10 million in 2005. The company's shares fell 26% last year.

Whitman received $995,016 in salary, $964 more than in 2004. She also got a bonus of $1.7 million, options valued at $6.9 million and $408,400 in other compensation, according to a regulatory filing Wednesday by the San Jose company.

EBay's shares fell last year for the first time since 2000 after net income grew at about half the rate of 2004. The company faces increased competition from Amazon.com Inc. and Google Inc.

EBay shares have dropped 11% this year. They rose 15 cents to $38.47 on Wednesday.

To spur growth, EBay acquired eight companies last year including Skype Technologies, enabling it to enter the fast-growing Internet telephone market. EBay also bought a payment-processing service and a price-comparison website to boost revenue, which climbed 39% to $4.55 billion last year. Net income grew 39% to $1.08 billion.

Whitman in 2004 received $994,052 in salary, a $1.55-million bonus and $362,374 in other compensation. Options granted to her last year were valued at $26.1 million, assuming 5% annual appreciation over a 10-year term.

The company granted options to Whitman in 2004 and 2005 under a 2001 equity incentive plan, filings said.

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