eBay 1998 Annual Report Download - page 49

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The following table sets forth the number of shares acquired and the value realized upon exercise of stock
options during 1998 and the number of shares of Common Stock subject to exercisable and unexercisable stock
options held as of December 31, 1998 by each of the Named Officers. Value at fiscal year end is measured as the
difference between the exercise price and the fair market value at close of market on December 31, 1998, which was
$80.42.
Aggregate Option Exercises in 1998 and Values at December 31, 1998
Number of
Shares
Acquired on Value
Number of Securities Underlying
Unexercised Options at
December 31, 1998
Value of Unexercised
In-the-Money Options at
December 31, 1998
Name Exercise(1) Realized(2) Exercisable(#) Unexercisable(#) Exercisable($) Unexercisable($)
Margaret C. Whitman ...................... . 7,200,000(3) $ 42,720,000 — — $ — $ —
Steven P. Westly .............................. . 2,484,000(4) 14,741,000 — — — —
Gary F. Bengier................................ . 1,575,000(5) 9,397,500 — — — —
Michael K. Wilson........................... . 1,800,000(6) 10,788,000 262,500 637,500 21,107,625 51,261,375
Jeffrey S. Skoll................................. . — — — — — —
(1) Except as otherwise noted, all of the shares acquired were unvested as of December 31, 1998 and subject to the
Company’ s right of repurchase upon termination of employment at a price equal to the exercise price of the
option pursuant to which the shares were acquired.
(2) Based on the initial public offering price per share of $6.00, minus the per share exercise price, multiplied by
the number of shares issued upon exercise of the option.
(3) As of December 31, 1998, 90,000 shares of the 7,200,000 shares acquired were vested and 7,110,000 shares
were unvested and subject to the Company’ s right of repurchase upon termination of employment.
(4) As of December 31, 1998, 792,000 shares of the 2,484,000 shares acquired were vested and 1,692,000 shares
were unvested and subject to the Company’ s right of repurchase upon termination of employment.
(5) As of December 31, 1998, 426,563 shares of the 1,575,000 shares acquired were vested and 1,148,437 shares
were unvested and subject to the Company’ s right of repurchase upon termination of employment.
(6) As of December 31, 1998, 862,500 shares of the 1,800,000 shares acquired were vested and 937,500 shares
were unvested and subject to the Company’ s right of repurchase upon termination of employment.
Compensation Arrangements
Ms. Whitman’ s employment offer letter of January 16, 1998 provides for an initial annual base salary of
$175,000 and an initial bonus of up to $100,000. It also provides that, in the event Ms. Whitman’ s employment is
terminated for any reason other than cause, she will continue to receive her salary compensation for six months and,
if at the end of such period Ms. Whitman remains unemployed, she will be eligible to receive additional salary
compensation for the lesser of six months or until she becomes employed. Ms. Whitman was also granted an
immediately exercisable option to purchase 7,200,000 shares of Common Stock. As described under “Certain
Transactions,” in February 1998 Ms. Whitman exercised this option. The shares issued to her remain subject to the
Company’ s right to repurchase “unvested” shares upon the termination of her employment. This right to repurchase
lapsed with respect to 1,800,000 shares as of March 1, 1999 and will lapse with respect to 150,000 shares at the end
of each month thereafter.
Mr. Bengier’ s employment offer letter of September 15, 1997 provides for an initial annual base salary of
$125,000. Mr. Bengier was also granted an immediately exercisable option to purchase 1,575,000 shares of
Common Stock at an exercise price of $0.03, which he exercised in full in January 1998. The shares are subject to
the Company’ s right to repurchase unvested shares upon termination of employment, which right lapsed as to
393,750 shares in September 1998 and will lapse with respect to 32,813 shares at the end of each month thereafter.
Mr. Westly’ s employment offer letter of August 8, 1997 provides for an initial annual base salary of $120,000
and a $25,000 signing bonus. Mr. Westly was also granted immediately exercisable options to purchase 2,484,000