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Marissa Mayer Will Make $186 Million on Yahoo's Sale To Verizon (cnbc.com)
Vindu Goel, reporting for the NYTimes: Yahoo shareholders will vote June 8 on whether to sell the company's internet businesses to Verizon Communications for $4.48 billion. A yes vote, which is widely expected, would end Marissa Mayer's largely unsuccessful five-year effort to restore the internet pioneer to greatness. But Ms. Mayer, the company's chief executive, will be well compensated for her failure. Her Yahoo stock, stock options and restricted stock units are worth a total of $186 million, based on Monday's stock price of $48.15, according to data filed on Monday in the documents sent to shareholders about the Verizon deal. That compensation, which will be fully vested at the time of the shareholder vote, does not include her salary and bonuses over the past five years, or the value of other stock that Ms. Mayer has already sold. All told, her time at Yahoo will have netted her well over $200 million, according to calculations based on company filings.
Nothing like being a part of the ruling class.
The implication of this article is that Mayer made out like a bandit while doing a bad job. But the numbers say that she didn't do a bad job. That surprised me, because my perception was the opposite, but the last time this came up, I did the numbers, here.
Under Mayer's tenure, Yahoo! generated a 21% annual growth rate in market value, beating Apple, Microsoft, IBM and Oracle, as well as the NASDAQ, S&P 500 and Dow Jones. I should point out that those companies also pay dividends, but they're all in the 1-2% range, so the dividend payouts don't change the results.
Now, you can argue that some other CEO would have done better, or that the main reason for Yahoo!'s success under her tenure was the decision to invest in Alibaba, made by her predecessor, but speculation about what someone else might have done is unproductive, and she decided to stay with that investment. The bottom line is that CEOs are supposed to generate value for shareholders, and market-beating value was generated, from a company that was clearly moribund before she was hired.
You can also argue about whether any CEO is worth the millions they get, but if you judge against other CEOs she earned her money.
Note to ACs: I usually delete AC replies without reading them. If you want to talk to me, log in.
To be fair, Stephen Elop has a track record of driving a business into the ground so MS can buy it and finish digging the hole. He's more of a hired goon in the embrace->extend->extinguish chain than an actual CEO.
She didn't resist calls to sell Alibaba. She sold off a portion, and found out that there were huge tax consequences. She tried selling off the rest of Alibaba, and tried to avoid taxes the second time. The problem was that the IRS was going to treat spinning off Alibaba shares into a separate holding company as tax event, and tax accordingly. So she changes her mind, and decides to sell Yahoo's main business instead, and leave the Alibaba and Yahoo Japan shares in basically what well be a holding company for the shareholders tax-free.