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This excerpt taken from the EBAY DEF 14A filed Mar 19, 2009. Base
Salary
Base salary is the fixed portion of executive pay and is set to
reward individuals’ current contributions to the company
and compensate them for their expected day-to-day performance.
In 2008, our pay positioning strategy was to target annual base
salary and short-term cash incentives of the executive group as
a whole at median levels relative to our peer groups in the
high-technology and consumer products sectors and general
industry third-party survey data. The Compensation Committee
then sets a salary range for each executive job level, with the
midpoint of the salary range based on the median level of our
peer groups, although more weight is given to the
high-technology sector than to the consumer product sector. For
2008, eBay’s average actual annual base salary and
short-term cash incentive pay position for our named executive
officers was within approximately 5% of the median level of our
peer group companies and the general industry survey data used.
Variances were due to a number of
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factors, including the performance of individual members of the
executive group, recent promotions, and changes to the cash
compensation necessary to retain certain executive officers, as
described below.
Starting in 2009, our pay positioning strategy is to target
annual base salary ranges of the executive group as a whole at
the median level relative to our single peer group and general
industry third-party survey data. However, in light of the
financial uncertainties caused by the global macroeconomic
recession and credit crunch, the committee decided to freeze
2009 salaries for executive officers, including our CEO, at 2008
levels (except in a small number of individual cases where
adjustments were deemed warranted).
The committee meets at least once a year to review and approve
each executive officer’s salary for the upcoming year. When
reviewing base salaries, the committee considers the pay
practices of peer group companies, compensation of executives in
similar positions at comparable companies who participate in
proprietary third-party surveys, individual performance, levels
of responsibility, breadth of knowledge, and prior experience.
Of these factors, competitive pay practices are the primary
determinant of the range within which individual salaries are
set. When the committee set the base salaries for our named
executive officers at the beginning of 2008, it took into
account the management changes and promotions, and set the base
salaries within the applicable ranges. Later in the year, the
committee re-evaluated Mr. Swan’s compensation
arrangements and decided to increase his salary above the range
for his job level to reflect his increased role and
responsibilities. See footnote 1 to the Summary Compensation
Table below for details regarding the 2008 salaries for each of
our named executive officers.
This excerpt taken from the EBAY DEF 14A filed Apr 28, 2008. Base
Salary
Base salary is the fixed portion of executive pay and is set to
reward individuals’ current contributions to the company
and compensate them for their expected day-to-day performance.
Our pay positioning strategy is to target annual base salary and
short-term cash incentives of the executive group as a whole at
median levels relative to our peer groups in the high-technology
and consumer products sectors. The Compensation Committee then
sets a salary range for each executive job level, with the
midpoint of the salary range based on the median level of our
peer groups, although more weight is given to the
high-technology sector than to the consumer product sector. For
2007, eBay’s average actual annual base salary and
short-term cash incentive pay position for our named executive
officers was 26% lower than the median level of the consumer
products peer group and 2% higher than the median level of the
high-technology peer group. Variances were due in part to the
performance of individual members of the executive group and in
part to the cash compensation necessary to hire certain
executives when they were recruited to eBay, as described below.
The committee meets at least once a year to review and approve
each executive officer’s salary for the upcoming year. When
reviewing base salaries, the committee considers the pay
practices of companies in our peer groups, individual
performance (which takes into account, among other things, the
financial results of the executive officer’s business unit
or organization, achievement of business-related objectives, and
leadership abilities), levels of responsibility, breadth of
knowledge, and prior experience. Of these factors, competitive
pay practices are the primary determinant of the range within
which individual salaries are set. For 2007, the committee set
the base salaries of our named executive officers within these
ranges, except for Mr. Donahoe, whose base salary was above
the range for his job level. Mr. Donahoe’s salary
exceeded the high end of his range in large measure due to the
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salary he negotiated when he joined us in 2005, which in turn
reflected the high cash compensation he received in his previous
position. Effective March 1, 2007, base salaries of our
named executive officers (other than our CEO) were $575,000 to
$830,000, which represent increases of 3.8% to 5.4% over the
prior year. For the fourth straight year, our CEO’s salary
was maintained at $995,016.
This excerpt taken from the EBAY DEF 14A filed Apr 30, 2007. Base
Salary
Base salary is the fixed portion of executive pay and is set to
reward individuals’ current contributions to the company
and compensate them for their expected
day-to-day
performance. Our pay positioning strategy is to target annual
base salary and short-term cash incentives of the executive
group as a whole at median levels relative to our peer groups in
the high-tech and consumer products sectors. The Compensation
Committee then sets a salary range for each executive job level,
with the midpoint of the salary range based on the median level
of our peer groups, although more weight is given to the
high-tech sector than the consumer product sector. For 2006,
eBay’s actual
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cash compensation pay position for executives was somewhat
higher than the median level, in part due to the performance of
individual members of the executive group and the cash
compensation paid to recently-hired executives, as described
below. The committee believes that paying higher cash
compensation was necessary to attract new executives,
particularly those who came to us from industries with higher
cash compensation levels.
The committee meets at least once a year to review and approve
each executive officer’s salary for the upcoming year. When
reviewing base salaries, the committee considers the pay
practices of companies in our peer groups, individual
performance against specified goals, levels of responsibility,
breadth of knowledge, and prior experience. Of these factors,
competitive pay practices are the primary determinant of the
range within which individual salaries are set. For 2006, the
committee set the base salaries of our executive officers named
in the Summary Compensation Table below (which are referred to
as our named executive officers) within these ranges, except for
Mr. Donahoe, whose base salary was above the range for his
job level. Mr. Donahoe’s salary exceeded the high end
of his range in large measure due to the salary he negotiated
when he joined us in 2005, which in turn reflected the high cash
compensation he received in his previous position. Base salaries
of our named executive officers (other than our CEO) were
$400,000 to $800,000, effective March 1, 2006, which
represent increases of 6.0% to 9.9% over the prior year. For the
third straight year, our CEO’s salary was maintained at
$995,016. In determining Ms. Whitman’s salary, the
committee gave particular attention to Ms. Whitman’s
request that her salary not be raised.
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