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Print 26 comment(s) - last by JKflipflop98.. on Jul 22 at 12:20 AM
Annual salary for Mayer is $1 million

Many people believe Yahoo is on a continued downward spiral. The once massive web portal and search engine has been overshadowed by Google and has gone through a series of different CEOs in a relatively short period of time. So far, no one seems to be able to pull Yahoo out of the ditch.
 
Recently, Yahoo chose Marissa Mayer as its new CEO. Mayer was employee number 20 for Google and held a high position within the search giant. Many were likely wondering what exactly Yahoo offered Mayer to lure her away from her cushy and secure job with Google to the decisively unknown realm of Yahoo.
 
A regulatory filing presented by Yahoo yesterday outlines Mayer's new compensation package, and it's huge. Undoubtedly, the massive $70 million package was a large part of the reason Mayer left Google and went to Yahoo. The compensation package works out to $70 million in salary, bonuses, restricted stock, and stock options over the next five years. The new CEOs annual salary is $1 million and she can earn as much as $2 million in annual bonus.
 
The stocks options are worth $42 million and there's an additional $14 million in "make whole restricted options" that compensates Mayer for the forfeiture of compensation from Google. Reuters reports that if you include some of the stock grants Mayer could earn as much as $20 million a year or $100 million over the five-year term of her contract.
 
Mayer was the first female Google engineer and one of the company's earliest employees. She is already estimated to be worth as much as $300 million. Of course, if Yahoo continues its decline those stock options could be worth less than expected. 

Source: Reuters


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Moronic Board
By Trisagion on 7/20/2012 10:05:43 AM , Rating: 5
Maybe this is why Yahoo is losing money. Change CEOs like underwear and they'll clean out the bank account with bonuses, perks and finally .... massive severance pay.




RE: Moronic Board
By NellyFromMA on 7/20/2012 10:32:47 AM , Rating: 2
It's all about her tech-celebrity, which frankly isn't that interesting. I suspect a Google-Yahoo relationship of soem sort in the works frankly.

So boring it hurts.


RE: Moronic Board
By geddarkstorm on 7/20/2012 1:04:53 PM , Rating: 2
"Boring". That should totally be Yahoo's next search engine name. Kinda got a Bing x Google flare to it.


RE: Moronic Board
By rburnham on 7/20/12, Rating: 0
RE: Moronic Board
By Schrag4 on 7/20/2012 11:06:44 AM , Rating: 2
That's your opinion. I don't have a reason to believe anyone that runs Yahoo is worth that much either, but it's not my money so I don't care. Why do you?


RE: Moronic Board
By Reclaimer77 on 7/20/2012 11:09:04 AM , Rating: 2
That's not true. Lets say she turns Yahoo around and doubles or triples their stock price and profits. Will she be worth it then?

The stupid CEO hate on Daily Tech needs to stop. Fact is there is a very small pool of CEO-capable people to choose from out there, which is why they are paid so much. They steer ships worth billions of dollars.

$70 million over five years? There are actors who get almost that much for ONE movie. Come on, get some perspective here.


RE: Moronic Board
By Breathless on 7/20/2012 12:15:00 PM , Rating: 5
Stop being reasonable, nobody appreciates that here...


RE: Moronic Board
By praktik on 7/20/2012 12:27:27 PM , Rating: 1
"Moronic Board"?

Ah yes, you're right, it's here where you'll see outlandish and moronic ideas like Obama being a Marxist!!


RE: Moronic Board
By KoS on 7/20/12, Rating: 0
RE: Moronic Board
By Reclaimer77 on 7/20/12, Rating: -1
RE: Moronic Board
By EricMartello on 7/20/2012 8:01:59 PM , Rating: 2
I don't have a problem with CEOs earning what they're worth, but I think their compensation should be provided on a contingency based on the performance of the company they are directing, rather than a guaranteed amount that they get regardless of success or failure.

You could say that would limit the company's options for finding real talent, but in my experience people who know they're good are not going to back down from a challenge. It's the ones who "look good on paper" that want guaranteed compensation because they themselves are not confident in their ability to deliver any worthwhile results.

If you don't have anything to lose you'll make decisions differently than you would if your personal livelihood is on the line.


RE: Moronic Board
By spread on 7/20/2012 11:08:09 PM , Rating: 2
quote:
$70 million over five years? There are actors who get almost that much for ONE movie.


Usually AFTER the movie makes money. They get paid in royalties. I haven't seen Yahoo do any better, why not pay her based on her performance? Yahoo tanks? Well that's too bad, you were the woman at the top. Eat dirt. Her value as a CEO is directly tied in with the value of the company.


RE: Moronic Board
By JKflipflop98 on 7/22/2012 12:20:16 AM , Rating: 2
There is NO ONE that deserves that kind of pay package. I could maybe see if she came up with the cure for cancer, but that's about it.

The fact that anyone would defend this disgusting show of excess speaks volumes.


RE: Moronic Board
By Apone on 7/20/2012 12:18:40 PM , Rating: 3
@ rburnham

Not sure what your reasoning is but let me clarify there are several CEO's out there that are definitely worth (at the very least) $70 million. Look at Carlos Ghosn, executive at Renault who was brought in as Nissan's new CEO (back in 1999); he not only saved Nissan from bankruptcy and returned the company to profitability, but he's also made Nissan into a major import automaking competitor in North America.

Also look at Jack Welch, former CEO of GE; During his 20 year tenure (1981-2001), he took GE from having a $14 billion market value to more than $410 billion when he left.

I could go on and on with Alan Mulally, Howard Schultz, and of course Steve Jobs who were all brought in to turn their respective companies around but I'll let you do the research on them.

I agree with Reclaimer77, don't lump all CEO's into one "arbitrarily unqualified" category; some of them are actually more than capable....


RE: Moronic Board
By Yojimbo on 7/20/2012 2:17:51 PM , Rating: 2
How is value ideally determined in a capitalist system? by market conditions. Do you really think that CEOs are such valuable people, capable of doing jobs that only a few hundred people could possibly do, that there's a sensible bidding war between companies for their services? If that is the case it is only because the majority of people do not have the opportunity to have the history of experience that is demanded by those in power to be hired for such a position, not because of any outstanding abilities they have. I am not saying these people are not capable, I am saying that there are hundreds of thousands of other capable people that haven't been groomed for the job. It's a very closed culture, and that's what allows the salaries to be forced up to exorbitant levels. Otherwise the average salary would be much lower, and then the salaries of the people who perform better than the rest would also most likely be much lower. It's not a matter of how much money they made the company as in your example of GE's increase in market value during Jack Walsh's tenure (and, btw, I would think that shareholders would be more interested in profitability than increase in market value, most of which would come at the cost of diluting their share of the company), it's rather a matter of how much money they make the company above a "journeyman" replacement. Well it's always a hard decision who to hire, and when you have a lot of money at stake, you have a lot of money to throw around. But I think that the actual salaries have to do more with anxiety and with the closed culture than with actual value most of these people are adding to the company.

As far as Mayer, I agree that celebrity probably is a huge factor in the consideration. Look at how much Carly Fiorina made. There seems to be a clamor to put a woman as a CEO, and there are only a certain number of them they feel comfortable giving a job to. I mean look at how much money Danica Patrick makes without winning a race.


RE: Moronic Board
By Apone on 7/20/2012 6:54:28 PM , Rating: 2
quote:
Do you really think that CEOs are such valuable people, capable of doing jobs that only a few hundred people could possibly do, that there's a sensible bidding war between companies for their services?


Yes, because the CEO names I have previously mentioned clearly illustrate that being CEO is not a job that everyone can do or is willing to do.

quote:
It's not a matter of how much money they made the company as in your example of GE's increase in market value during Jack Walsh's tenure (and, btw, I would think that shareholders would be more interested in profitability than increase in market value, most of which would come at the cost of diluting their share of the company), it's rather a matter of how much money they make the company above a "journeyman" replacement.


Do me a favor and research exactly how Mr. Jack Welch turned GE around (hint: there's a reason why he's nicknamed "Neutron Jack"). This is why not everyone can do a CEO's job which I agree goes beyond making money.

quote:
As far as Mayer, I agree that celebrity probably is a huge factor in the consideration. Look at how much Carly Fiorina made. There seems to be a clamor to put a woman as a CEO, and there are only a certain number of them they feel comfortable giving a job to. I mean look at how much money Danica Patrick makes without winning a race.


I'm confused, how exactly is Ms. Marissa Mayer a celebrity? Carly Fiorina? And Danica Patrick? Yeah I get that Danica Patrick is overhyped but she's not a CEO; she's popular because she's a trail blazer and obviously proved that being female and a race car driver are not mutually exclusive.


I am deeply disappointed
By Motoman on 7/20/2012 10:16:46 AM , Rating: 1
...at the fact that there appears not to be any photochopped pr0n of this woman on the internet yet.

Slackers.




RE: I am deeply disappointed
By Asrafil on 7/20/2012 10:26:39 AM , Rating: 2
ROTFLOLOL, people are getting lazy these days :p


RE: I am deeply disappointed
By FormulaRedline on 7/20/2012 2:58:17 PM , Rating: 2
I'm sure there is. But you probably searched for it using Google or Yahoo, didn't you?

She who controls the search engines controls the results!


RE: I am deeply disappointed
By The Raven on 7/20/2012 8:23:37 PM , Rating: 2
Ok Moto, are you Jack Armstrong or Joe Getty?


Again....
By Asrafil on 7/20/2012 9:59:57 AM , Rating: 2
I feel compelled to repeat my comment in the previous article:

Dammmm she is beautifulllllllll.....




RE: Again....
By WalksTheWalk on 7/20/2012 2:17:11 PM , Rating: 2
Now, how to me get some of that $70,000,000.00 hotness?? I could be convinced to be her boy-toy. If only I weren't so hideous...


What can she do?
By AntiM on 7/20/2012 2:31:20 PM , Rating: 2
I don't know what Yahoo! is. I don't use it as a search engine. It has lots of links to news stories and articles.

Is there anything to be gained by trying to compete with Google on the search engine front?

If I were put in charge of the company right now, I don't know what I would do to it to make it more profitable.




RE: What can she do?
By michael2k on 7/21/2012 9:58:12 AM , Rating: 2
Make a yahoo powered Android smartphone with integration between all it's services. Default to Google search and get paid $8 per handset per year. Get about $100 per handset. Yahoo is the only other service provider that can compete with Google, Microsoft, Apple, and Amazon.


Cha-Ching
By One43637 on 7/20/2012 2:23:27 PM , Rating: 2
Her main goal while making all that money is either a Google-Yahoo partnership or an outright buyout.




YESSSSSS!!!!!!!!!
By flyingpants1 on 7/21/2012 9:47:41 PM , Rating: 2
$70,000,000

And she doesn't have to do anything!

Congrats dear.




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