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Yahoo's Marissa Mayer In Line For $55M Severance If Fired Within A Year Of Sale (nytimes.com)

Posted by BeauHD on from the pretty-penny dept.

whoever57 writes: A Securities and Exchange Commission (SEC) filing on Friday revealed that Yahoo's board has agreed to a $55 million severance package for Marissa Mayer if she loses her job within a year of a sale. That's a lot of money for a chief executive who hasn't been able to keep Yahoo's stock from falling. In 2015, the value of Yahoo's stock fell by 33%. Worth noting: most of the money from the severance package is composed of restricted stock units and options -- there's only $3 million in cold hard cash. Also, Yahoo revealed Mayer received a significant pay cut last year. Her "reported pay" was $36 million, but her "realized pay" is closer to $14 million.

3 of 181 comments (clear)

  1. That's a lot of money by inode_buddha · · Score: 5, Insightful

    That's a lot of money, full stop. Nothing else needed to be said after that. Where can I get a job like that? I mean since the price of labor is going down and all... This is PROOF that ability and hard work has exactly jack shit to do with compensation or the Majick Fairytale Free Market.

    --
    C|N>K
  2. $55 million severance by Anonymous Coward · · Score: 5, Funny

    What's that in MALE failed CEO dollars? 71 mil?

  3. Some horrifying Key Statistics by Marginal+Coward · · Score: 5, Interesting

    A TV pundit recently observed that each CEO of Yahoo has walked away with significant compensation after a short term, yet the stockholders have gotten nada in the form of dividends. And they may not get much when it's eventually sold off, or will get nothing if it goes bankrupt (which is less likely.)

    Ironically, I rely on Yahoo's "Finance" section for much of my own stock-picking: its "Key Statistics" page is by far my favorite one-page stock statistic summary. Here are some highlights (read: lowlights) for YHOO itself:

        Profit Margin (ttm): -87.74%
        Return on Assets (ttm): -0.16%
        Return on Equity (ttm): -12.82%
        Trailing Annual Dividend Yield3: N/A

    This paints a picture of a company that is losing money (negative profit margin), hasn't managed its assets well (negative return on assets and return on equity), and doesn't treat stockholders well (see ROA and ROE, together with no dividend.) Next, throw in a history of expensive golden parachutes to short-term CEOs and you've got a stock that no one (IMHO) should ever own.

    Sadly, those of us who have part of our money in S&P 500 funds have a few bucks that get to go along on this horrifying ride.