Icahn, who owns just over 2 percent of the e-commerce company, has
been pressuring eBay for weeks to spin off its PayPal payments
business. He has also repeatedly accused eBay of poor corporate
The billionaire nominated Icahn Enterprises LP employees Daniel
Ninivaggi and Jonathan Christodoro, both of whom Icahn regularly
nominates to boards.
The chairman of eBay's corporate governance and nominating
committee, Richard Schlosberg III, said the board considered both
but rejected them because "neither nominee has relevant experience
EBay said since each Icahn nominee currently sits on four public
company boards, they are not in compliance with eBay's guidelines on
EBay founder and Chairman Pierre Omidyar in a statement urged
shareholders to support the company's slate, which includes Chief
Executive John Donahoe.
The company also said Donahoe's 2013 compensation fell by more than
half to $13.8 million. That largely reflects the board's decision in
2012 to give him a one-time award of $14.8 million in performance
share units, although eBay's weaker-than-expected financial
performance also hurt his pay.
The company did not in its preliminary proxy statement set the date
for its next annual shareholders meeting, which is expected to take
place in the spring.
Icahn has sparred with eBay management via open letters and press
releases since January, when the pugnacious billionaire made an
unsolicited proposal for eBay to hive off PayPal.
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The company has repeatedly said PayPal and eBay are better off as
part of the same company.
In a fresh missive on Monday, Icahn accused Donahoe of
"inexcusable incompetence" and said the fast-growing PayPal could
"wither" if it remains part of eBay.
"PayPal may well go the way of other former technology greats such
as Blackberry, Dell, Eastman Kodak, Polaroid, Nintendo, Xerox, Sony,
Palm, and AOL," Icahn said.
EBay called Icahn's comments "false and misleading."
"In pursuit of his own profit motives, Carl Icahn has made another
unsubstantiated attack on John," eBay said.
EBay shares fell 1.4 percent to $58.22 on the Nasdaq.
(Additional reporting by Deepa
Seetharaman in San Francisco; editing by Richard Chang)
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