eBay Hires Auction Czar

Updated from 6:12 p.m. EST

eBayEBAY has hired the top executive from a blue-chip consulting firm to oversee its sprawling network of online marketplaces.

John Donahoe, a 23-year veteran of privately held consulting firm Bain & Co., has signed on as president of eBay's Business Unit, a new position that will report directly to CEO Meg Whitman. Bill Cobb, president of the company's North American operations, and Matt Bannick, president of international operations, will report to Donahoe.

In his new post, Donahoe will serve as mastermind of eBay's global auction and e-commerce business and official lightning rod for the sometimes vocal community of eBay sellers. Whitman predicted in a statement that Donahoe would "bring a whole new level of excellence to every facet of the company."

"This is a new position that wraps our North American and international presences closer together," said eBay spokesman Chris Donlay. "As the business expands, we are looking at how to support that growth and John will help us do that."

The appointment of Donahoe comes three months after a top-level management shuffling that left Cobb and Bannick in their new posts as well as put Jeff Jordan in charge of eBay's PayPal unit. At the time, eBay watchers speculated that Whitman was setting up a three-way horse race for her eventual successor.

Donahoe's slot at Bain will be filled by Steve Ellis, who currently heads the firm's San Francisco office. Boston-based Bain's consulting services range from helping companies make operations more efficient to M&A activity to marketing and product development.

An SEC filing said Donahoe's contract calls for a biweekly salary of $28,000 -- coincidentally, the same amount that a grilled-cheese sandwich with the likeness of the Virgin Mary sold for on eBay not too long ago. He will also receive a three-year retention bonus worth $2 million.