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Yahoo's Marissa Mayer Could Get $23M Exit Payment, Ex-IAC Executive Will Become CEO (hollywoodreporter.com)

Posted by msmash on from the moving-forward dept.

Yahoo has named a replacement for CEO Marissa Mayer once the merger with Verizon becomes official. The next leader of the Sunnyvale-based tech giant will be Thomas J. McInerney, a former chief financial officer of IAC. From a report: Yahoo said Monday that after it completes the sale of its core search business to Verizon and Marissa Mayer and co-founder David Filo step down as board members of Altaba (the new name for the remaining holdings), Mayer could get a $23 million "golden parachute" payment, and Thomas McInerney will run the remaining part of the business as CEO. Mayer's golden parachute, a large payment for top executives if they lose their position as a result of a deal, would include $19.97 million in equity and more than $3 million in cash, according to a regulatory filing. It would kick in if there is a change in control, as will be the case in the deal, and she is terminated "without cause" or "leaves for good reason" within a year.

7 of 102 comments (clear)

  1. Worth it by kamapuaa · · Score: 5, Informative

    Under her, Yahoo nearly tripled in value, from about $16 billion to $44 billion. She won't win a prize for innovation, but financially she played it smart with Yahoo and made her investors a lot of money, and it makes sense that she would get paid handsomely for the job.

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    1. Re:Worth it by McGruber · · Score: 4, Informative

      Under her, Yahoo nearly tripled in value, from about $16 billion to $44 billion.

      Wow, I didn't believe that, but I checked YHOO's stock price and kamapuaa is correct. When Mayer became CEO in July 2012, YHOO was trading under $16/share. As I'm posting this, YHOO is trading at $46.5/share. .

    2. Re:Worth it by stephanruby · · Score: 4, Informative

      I think the parent was going for "funny" karma, but that plan backfired and he got an "insightful" instead.

      Both 15% share of Alibaba and 35% of Yahoo Japan are now worth a total of 41 billion dollars, and Marissa Mayer had nothing to do with either of those decisions (which both predate her).

    3. Re:Worth it by Zontar_Thing_From_Ve · · Score: 4, Informative

      What? The company lost 95% of value in the last ten years, five of those under Mayer.

      That's absolutely not true and it's easy to prove. You can go to a place like Yahoo Finance (no joke intended - their website is free and easy to navigate) and look up a 10 year run of the stock. On March 13, 2007 Yahoo was worth $29.56 a share at close. It's currently worth about $46.57 a share as I write this on March 13, 2007. That's a gain, not a loss. Maybe something like profits or income went down 95%, as you state, over the values 10 years ago, but that is not reflected in the stock price or the company's market valuation, which is more important (for now) than the money it actually pulls in. Yahoo is valued at almost $45 billion. That's a lot of money. Even if basically she ran the true Yahoo business into the ground and got lucky with Alibaba and the fact that Yahoo Japan is not messed up and has real value, the US stock market has not punished her for this, so to a certain extent you can argue that she did her job.

    4. Re:Worth it by stephanruby · · Score: 4, Insightful

      It's not genius, but you can't argue with results.

      Yes, you can.

      Results can certainly be the results of other factors. A CEO shouldn't be judged in a bubble devoid of context.

      The existing economy, the success of competitors, prior conditions, prior success of the company, etc. There could be a thousand different reasons not related to the CEO's performance that could affect the results of his/her company under his/her watch.

      And if you want to give Marissa Mayer the benefit of the doubt, give it to her because the company she inherited wasn't doing that well in the first place (except for its Alibaba and Yahoo Japan stock).

  2. Re:Nice by Fire_Wraith · · Score: 4, Insightful

    Only at the CEO level is failure so richly showered in money.

  3. Re:She didn't or hasn't done well in my opinion by stephanruby · · Score: 4, Interesting

    Of course some will label my opinion as "women in technology bashing."

    Marissa Mayer is the real anti-feminist. She banned working from home. At the same time, she got a special nursery built for her office at the expense of the company for her own four-months-old. And there was certainly never any talk of building nurseries for the other Yahoo workers that needed them.

    The lesson here is that if you're going to require employees to sacrifice a previous benefit they've had, you better suck it up yourself, use your overinflated personal income to hire a couple of nannies, and at least pretend on the surface that you're sacrificing at the same level that they are.

    Not doing so just created an environment where your own employees just became apathetic worker bees, which would partially explain the 2014 Yahoo data breach (after Mayer instituted that policy change in 2013).