SAN JOSE (dpa-AFX) - e-commerce giant eBay Inc. (EBAY) said in a regulatory filing that following the separation of the company's ecommerce and payments businesses, its chief executive officer John Donahoe would get an exit package estimated to be worth about $23 million.
Chief Financial Officer Bob Swan is estimated to receive an exit package of around $12 million.
According to the filing, the benefits for the CEO and CFO would include 'a cash payment equal to two times annual base salary and two times the annual cash incentive paid at the target amount, as well as the acceleration of all restricted stock unit and stock option awards that were outstanding and unvested as of the date of termination of employment.'
The benefits for other departing executive officers, following the deal, would include a cash payment equal to 1.5 times annual base salary and 1.5 times the annual cash incentive paid at the target amount, in addition to the acceleration of all restricted stock unit and stock option awards that were outstanding and unvested at the time of termination of employment.
In addition, for all stock option awards granted in 2013, 2014 and 2015, if any, the post-termination period to exercise any vested options will be extended from 90 days to 36 months.
It was in September that eBay approved a plan to separate the eBay and PayPal businesses into independent publicly traded companies in 2015. The move is aimed at maximizing strategic focus and flexibility for both businesses to capitalize on their growth opportunities.
Donahoe and Swan will be responsible for leading the separation of each business, with board oversight. Both of them will not have an executive management role in the new eBay and PayPal companies, but will serve on one or both of the boards of the two companies.
The stock climbed 2 percent on Thursday to settle at $57.53.
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