Since CEO Marissa Mayer has been the head of Yahoo, the company has seen a spiral of declining revenues. In February 2016, the company announced that its core assets are up for sale. And on April 29, 2016, Yahoo revealed the available packages for executives if they are dethroned in the event of the company being sold.
Mayer will be compensated $54.8 million in cash and stock if she is removed from her position within a year of the sale. Specifically broken down, her payout includes a cash severance of $3 million, $26,324 to continue her health benefits, $15,000 for outplacement, and approximately $52 million worth of accelerated restricted stock and options.
And that’s just what she gets if she leaves. Mayer already received $36 million in 2015 as part of her standard annual compensation. In 2014, she received $42.1 million, making her the highest paid female CEO.
Other executives will also receive large payouts if they are let go after a sale. Yahoo's Chief Revenue Officer, Lisa Utzschneider, is set to get $19.9 million, CFO, Ken Goldman, would receive $16.1 million, and the company's general counsel Ronald Bell stands at $9 million.
While Yahoo has no deadline for reaching a decision regarding the sale, analysts “expect a deal to be struck within the next two months at a price ranging anywhere from $4 billion to $10 billion.”
As the company continues to look for a buyer for its internet business, there have been conflicts with investors. Yahoo reached a settlement with activist hedge fund, Starboard Value, on April 26, 2016, agreeing to put four Starboard nominees on Yahoo’s board of directors. Starboard CEO Jeffrey Smith is one of three on the committee who will be assessing bids for the sale.
Given Yahoo’s financial situation worsening while Mayer was at the helm, her pay package is expected to be a controversial issue. Yahoo also expects revenue to dip an additional 15 percent this year to approximately $3.5 billion.
Source: Ars Technica
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