As eBay's Stock Soared, Insiders Sold

For all of last year, eBay employees cashed options worth about $247 million, or about $61,600 per employee.

But eBay executives and directors have sold shares worth considerably more than the company average this year.

Director Scott Cook, for instance, has exercised about 200,000 of his eBay stock options this year, in two separate sales, according to Vickers' data. Cook, whose options had a strike price of just $1.56, parlayed his sale into an estimated $16.2 million. Cook's sales represented about 21% of his eBay's holdings at the beginning of the year.

In contrast, during the same period last year, Cook sold about 120,000 options, about 11% of his holdings then, realizing some $6.3 million.

Another big seller of options was Maynard Webb, eBay's chief operating officer. Webb exercised some 200,000 options, about 38.1% of his total stake in eBay at the beginning of the year, in three separate transactions, according to Vickers. Despite having a strike price much higher than Cook's, Webb still netted an estimated $8.4 million from his sales.

In terms of shares sold, Webb's sales were even with the same period last year. But the value he realized was up considerably from the estimated $2.5 million he made during the first half of last year.

Among the insiders tracked by Vickers, director Dawn Lepore sold the biggest portion of her eBay stake in the first half of this year. Lepore, whose bid for re-election to eBay's board is being opposed by Calpers, has sold off an estimated 62% of her eBay holdings this year. In the process, she has gained about $2.5 million.

Lepore didn't sell any of her eBay holdings last year, according to Vickers' data.

But insiders aren't just selling stock options. Whitman's sales, for instance, appear to be from her holdings of actual stock, not options. Although Whitman's stock sales are down by 22% from the first half of last year, the value she realized from her sales is up about 28%.

That Whitman has continued to sell large quantities of eBay stock is not necessarily a surprise. She sold more than $100 million worth of eBay shares between February 2002 and February this year.

Meanwhile, Pierre Omidyar, eBay's chairman, sold 150,000 of the shares he created by founding eBay. Omidyar's sales, which amounted to just 0.2% of his total eBay holdings, earned him about $14.2 million.

That activity was up considerably from the first half of last year, when Omidyar sold 60,000 shares, realizing some $3.5 million.