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eBay Inc. share price down, reduces the total compensation of CEO Donahoe, rejects Icahn’s board nominees

eBay Inc. announced in a filing with the Securities and Exchange Commission in the U.S. that in 2013 the total compensation of its Chief Executive Officer John Donahoe was reduced by half due to failure to reach the companys financial targets and missing the expectations for “positioning relative to its competitors” at the beginning of the current year.

As reported by the Financial Times, eBay wrote in a proxy statement: “The committee concluded that while Mr. Donahoe continued to perform well against many of the goals, the companys financial performance for 2013 and positioning relative to its competitors at the start of 2014 did not fully meet expectations.”

Mr. Donahoe was attacked by the activist investor Carl Icahn, who has expressed his beliefs that eBay should split and sell its electronic-payments unit PayPal. Carl Icahn also proposed two board nominees, who however, were formally rejected by the company because neither of them had “relevant experience or expertise”.

eBay Inc. explained in its proxy statement, which was released on Monday and was cited by the Wall Street Journal: “Ebay and PayPal would compete better, grow faster, and deliver greater value to stockholders together than they would apart.”

According to eBays filing, the Chief Executive Officer of the company Mr. Donahoe received 13.8 million dollars in total compensation in 2013, which is 53% less than the compensation he got in 2012. The company revealed that 993,269 dollars in salary was paid to Mr. Donahoe, as well as a cash incentive payout estimated to 1.62 million and restricted stock and option awards that amounted to 11.1 million dollars. He also received other compensation of 165,508 dollars.

eBay Inc. has been putting its efforts in sustaining its positions at the e-commerce market, which has gone through considerable changes after the launch of the first auction website in 1995. The company is also trying to deal with its main competitor Amazon.com Inc., which is considered to be the current leader at the market.

eBay Inc. slid 1.42% on Monday to settle the session at $58.22, marking a one-year change of +9.58% and a market value of $75.37 billion. According to CNN Money, the 38 analysts offering 12-month price forecasts for eBay Inc. have a median target of $64.00, with a high estimate of $75.00 and a low estimate of $55.00. The median estimate represents a +9.93% increase from the last close.

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