The company paid Donahoe $13.8m in 2013, down from $29.7m in 2012.
Online retailer eBay has reduced the total compensation of its CEO, John Donahoe, by more than half after failing to meet the financial targets.
As reported by the Financial Times, in a proxy statement filed in advance of its shareholders’ meeting, eBay wrote: "The committee concluded that while Mr Donahoe continued to perform well against many of the goals, the company’s financial performance for 2013 and positioning relative to its competitors at the start of 2014 did not fully meet expectations."
The Financial Times said that the pay cut comes in the middle of a push by Carl Icahn, who owns more than 2% of eBay’s common shares, to get the company to spin off its PayPal subsidiary.
eBay recently said its board of directors does not endorse any Icahn Group nominee or the Icahn proposal.
The company urged shareholders to vote against the nominees put forward by him.
IeBay added that since 2008, PayPal has increased revenues from $2.4bn to $6.6bn and more than tripled operating profit from $0.5bn to $1.6bn.