Dive Brief:

• There’s no room for eBay CEO John Donahoe to work at either company after eBay’s split from PayPal, but his severance package of $23 million, according to estimates by Forbes based on filings with the Securities and Exchange Commission, will ease him out the door.

• Outgoing CFO Bob Swan will receive an estimated $12 million, and SVP/general counsel Michael Jacobson, human resources SVP Beth Axelrod, and corporate communications SVP Alan Marks will be similarly compensated with cash payments of two times annual base salary and stock options.

• The “golden parachutes” could rise even higher in value depending on future-performance stock awards. eBay is considering layoffs for 10% of its workforce; some 3,000 people.

Dive Insight:

These severance packages are typical for high-level corporate executives and, as eBay says, are tied to performance. It is an awkward juxtaposition, though, with the level of layoffs that often come with the kind of change required by a split like that planned by eBay and PayPal. 

“I wouldn’t say this stands out as unusual, but their scenario assures them a higher percentage payout of what they could get versus companies that have very restrictive payouts if an individual is fired,” Aaron Boyd, director of executive compensation research firm Equilar, told Forbes.