San Francisco, CA, United States (4E) – E-commerce website eBay made an uncommon move and cut chief executive John Donahoe’s pay by 53%. But it still doesn’t mean Donahoe was left out on the streets to starve. He still received $13.8 million, including salary and bonus in 2013 — down from the $29.7 million he made in 2012.
The main reason for Donahoe’s salary cut was unimpressive results in the final quarter of 2013. According to eBay, the company “did not fully meet expectations” under Donahoe’s watch.
“The committee concluded that while Mr Donahoe continued to perform well against many of the goals, the company’s financial performance for 2013 and positioning relative to its competitors at the start of 2014 did not fully meet expectations,” eBay wrote in a proxy statement filed on Monday in advance of its shareholders’ meeting, according to the Financial Times.
Donahoe has also locked horns with activist shareholder Carl Icahn over decisions made over the company. Icahn owns two percent of eBay’s common shares and wants eBay to spin off PayPal, acquired 12 years ago for $1.5 billion. Icahn feels PayPal can help increase eBay’s online transactions by making processing of payments smoother.
EBay still posted earnings of $850 million in the final quarter of last year.