Activist company

eBay shareholders vote on company principles at annual meeting

eBay shareholders voted in accordance with the board’s recommendations at its June 8, 2022 annual meeting of shareholders. There were five issues before them, including the re-election of all nine members of eBay’s board; approval of compensation for named executive officers of eBay; and approval of an amendment to the employee share ownership plan.

The fifth item on the agenda on “special meeting” rights was a shareholder proposal that would give owners of a combined total of 10% of outstanding common stock the power to call a special meeting of shareholders. Currently they can only do this if they together own 20%, but the activist shareholder who submitted the proposal, John Chevedden, said in reality it was closer to a 30% shareholding threshold. %.

eBay’s Board of Directors determined that the shareholder proposal was not in the best interests of eBay and its shareholders for several reasons and stated in part: “The current 20% ownership threshold for calling a special meeting allows shareholders holding a reasonable minority of eBay’s outstanding shares of common stock to call special meetings while avoiding the use of company resources on business matters that may not reflect the interests of shareholders. ‘eBay and its broader shareholder base and may not garner significant support.

eBay’s board recommended that shareholders reject the proposal, which they did, by a narrow margin.

In a presentation to investors immediately after the meeting, eBay CEO Jamie Iannone reminded them, “Our 2020-21 portfolio disposals brought in over $20 billion and we returned over $24 billion to investors. shareholders since 2018”. He did not remind investors that the company had been pressured to sell large portions of its portfolio by activist investors Elliott Management and Starboard Value LP.

During a Q&A after his presentation, Iannone answered a shareholder question about eBay’s practice of charging commissions (in addition to standard payment processing fees) on sales tax. that eBay was required to collect from buyers.

A link to the recording of eBay’s annual meeting and CEO presentation on June 8 is available on eBay’s Investor Relations website.

And leave a comment on the EcommerceBytes blog post, “eBay CEO Tells Shareholders Old Strategy Wasn’t Working.”

Ina Steiner

Ina Steiner
Ina Steiner is the co-founder and editor of EcommerceBytes and has been reporting on e-commerce since 1999. She is a widely cited authority on marketplace selling and is the author of “Turn eBay Data Into Dollars” ( McGraw-Hill 2006). His blog was featured in the book “Blogging Heroes” (Wiley 2008). She is a member of the Online News Association (September 2005 – present) and Investigative Journalists and Editors (March 2006 – present). Follow her on Twitter at @ecommercebytes and send topical tips to [email protected] See disclosure at EcommerceBytes.com/disclosure/.