EBay Inc, said Wednesday that President and Chief Executive Margaret C. Whitman received about a $1.7 million bonus for 2005, compared with a bonus of $1.55 million for the previous year.
According to a Form 8-K filed with the Securities and Exchange Commission, the San Jose, Calif., online auction service company said the 2005 bonus represents amounts paid in 2005 and 2006 for services rendered in 2005, and the 2004 bonus represents amounts paid in 2004 and 2005 for services rendered in 2004.
EBay said the bonuses for both periods represent amounts paid to Whitman under “eBay’s Incentive Plan,” which for years prior to 2005 was referred to as “eBay’s Management Incentive Plan.”
The company said Whitman got a 2005 salary of $995,016, compared with a 2004 salary of $994,052.
Also, eBay said it granted Whitman 550,000 stock options for 2005, compared with 1.2 million stock options the previous year. The stock options have been adjusted to reflect all prior stock splits, including eBay’s 2-for-1 stock split that occurred Feb. 16, 2005, the SEC filing said.
The company said the 550,000 stock options have a grant-date present value of about $6.9 million using the Black-Scholes option pricing model, which calculates the value of an option by considering the stock price, expiration date and other factors.
EBay said the 550,000 stock options have an exercise price of $42.58 each and expire March 1, 2015.
Shares of the company’s stock closed Tuesday at $38.32 each.

Posted: 04|12|06 at 3:25 pm. Filed under: Auction News.