eBay 2004 Annual Report Download - page 77

(9) Represents (i) for 2004, $444,950 paid under eBay's Management Incentive Plan, and $500,000 paid
under Mr. Bannick's special retention plan; (ii) for 2003, $346,264 paid under eBay's Management
Incentive Plan, and $250,000 paid under Mr. Bannick's special retention plan; and (iii) for 2002,
$207,540 paid under eBay's Management Incentive Plan, $250,000 paid under Mr. Bannick's special
retention plan and $15,000 paid pursuant to our discretionary reward program. See ""Item 13: Certain
Relationships and Related Transactions.''
(10) Represents (i) for 2004, $392,211 paid under eBay's Management Incentive Plan, $350,000 paid under
Mr. Cobb's special retention plans, a performance bonus of $280,000 granted by the Compensation
Committee in 2004, and an additional $3,935 bonus granted by the Compensation Committee in 2005;
(ii) for 2003, $298,899 paid under eBay's Management Incentive Plan, and $70,000 paid under
Mr. Cobb's special retention plan; and (iii) for 2002, $170,390 paid under eBay's Management
Incentive Plan and $70,000 paid under Mr. Cobb's special retention plan. See ""Item 13: Certain
Relationships and Related Transactions.''
The following executive oÇcers received grants of options in 2004 under eBay's 2001's Equity Incentive
Plan, which we also refer to as the 2001 Plan.
Option Grants During 2004
Potential Realizable Value at
Number of Percentage of Assumed Annual Rates of
Securities Total Options Stock Price Appreciation for
Underlying Granted to Exercise Option Term(4)
Options Employees Price Expiration
Name Granted(1) During 2004(2) per Share(3) Date 5% 10%
Margaret C. Whitman ÏÏÏÏ 1,200,000 2.8% $34.62 3/1/14 $26,123,025 $66,200,874
Maynard G. Webb, Jr. ÏÏÏÏ 650,000 1.5 34.62 3/1/14 14,149,972 35,858,807
JeÅrey D. JordanÏÏÏÏÏÏÏÏÏ 440,000 1.0 34.62 3/1/14 9,578,443 24,273,654
Matthew J. Bannick ÏÏÏÏÏÏ 440,000 1.0 34.62 3/1/14 9,578,443 24,273,654
William C. Cobb ÏÏÏÏÏÏÏÏÏ 300,000 0.7 34.62 3/1/14 6,530,756 16,550,219
(1) Options granted in 2004 were granted under the 2001 Plan. All options granted in 2004 to the Named
Executive OÇcers were granted by our Board, are nonqualiÑed stock options and are subject to a four-
year vesting schedule, vesting 12.5% after six months and
1
/ 48 per month thereafter. Amounts have been
adjusted to reÖect the two-for-one stock split eÅective on February 16, 2005.
(2) Based on options to purchase 42,964,094 shares of our common stock granted to employees in 2004.
(3) Options were granted at an exercise price equal to the fair market value of our common stock, as
determined by the Board of Directors on the date of grant. The exercise prices per share listed in the table
above are rounded to the nearest cent. The exercise per share has been adjusted to reÖect the two-for-one
stock split eÅective on February 16, 2005.
(4) ReÖects the value of the stock option on the date of grant assuming (i) for the 5% column, a 5% annual
rate of appreciation in our common stock over the ten-year term of the option and (ii) for the 10%
column, a 10% annual rate of appreciation in our common stock over the ten-year term of the option, in
each case without discounting to net present value and before income taxes associated with the exercise.
The 5% and 10% assumed rates of appreciation are based on the rules of the SEC and do not represent
our estimate or projection of the future common stock price. The amounts in this table may not
necessarily be achieved.
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