Five of eBay Inc.'s top executives will leave the company when it spins off the payment-processing division PayPal next year, and retaining them until the deal closes will cost more than $35 million, according to a regulatory filing today.
Chief Executive Officer John Donahoe will receive a retention bonus worth about $23 million, depending on the company's performance and stock price when the separation is complete, eBay spokeswoman Amanda Miller said. Donahoe won't join either company created by the split -- one offering payment systems and the other running online marketplaces.
"John's transition package is closely tied to the performance of the company during the separation period and the company's stock price at the time of separation," Miller said.
Devin Wenig, currently president of eBay Marketplaces, will become CEO of the new eBay company. Dan Schulman, who joined PayPal from American Express Co., will be CEO of the stand-alone PayPal payments company.
EBay Chief Financial Officer Robert Swan will receive a bonus estimated to be worth $12 million when the separation is completed. Other executives who won't join either successor company will be senior vice presidents Michael Jacobson, who runs the legal department; Elizabeth Axelrod, head of human resources; and Alan Marks, who's in charge of corporate communications. Their retention bonuses will be equal to 1.5 times their annual pay and bonus.
EBay announced the spinoff in September following pressure earlier this year from activist investor Carl Icahn.