Author: Bradshaw, Mark T.
Source: Harvard Business School
Company Name: eBay, Inc.
Number of pages: 13, 2, 2
The footnote disclosure for eBay, Inc. in 2000 indicates that if the company had accounted for employee stock options under the fair value method, its reported profit of $48 million would have been a loss of $91 million. The protagonist is a prospective member of the compensation committee of the board of directors, which provides a corporate governance perspective on the role of compensation in attracting, motivating, and retaining talented employees.