Yahoo Inc. YHOO +0.16% showed just how large it truly is betting that new Chief Executive Marissa Mayer can alter its fortunes.
Yahoo's new CEO Marissa Mayer is set to produce $100 million more than the next five years. WSJ's Amir Efrati has the details of Mayer's mega spend package. Photo: Getty Pictures.
Ms. Mayer will get up to $100 million in compensation, stock, bonus and retention awards more than the next 5 years, based on a Thursday regulatory filing by the Sunnyvale, Calif., Web business.
Ms. Mayer is expected to obtain around $5.four million from Yahoo for the remainder of this year and about $20 million a year immediately after that, though some of that amount is tied to efficiency targets set by the board.
Though it is tricky to create a direct comparison, Ms. Mayer's predecessors, Scott Thompson and Carol Bartz, received compensation packages worth $27 million and $44.6 million, respectively, over several years. Each CEOs departed prematurely. Mr. Thompson resigned in May well immediately after a five-month stint, though Ms. Bartz was fired last fall right after additional than 2½ years at Yahoo.
Ms. Mayer, 37 years old, joined Yahoo as CEO on Tuesday following a 13-year profession at rival Google Inc., GOOG +2.12% where most lately she was a vice president of neighborhood, maps and place services.
The Yahoo pay package incorporates restricted stock units valued at $14 million in order to "partially compensate" Ms. Mayer for forfeiting her compensation from Google. It also incorporates a one-time retention award that is certainly valued at $15 million and can vest over 5 years.
Ms. Mayer wasn't a single of Google's top rated officers and so her compensation wasn't publicly disclosed, but she was employee No. 20 in the World wide web search firm and received a windfall within the company's 2004 initial public supplying.
Mark Reilly, a partner at 3C Compensation Consulting Consortium LLC in Chicago, stated that Ms. Mayer's compensation package seemed "reasonable and competitive" given that Yahoo is "a massive business, a turnaround scenario, and they got someone who was performing a wonderful job" at Google. Such a package is "needed to attract that kind of talent," he mentioned.
Ms. Mayer faces the challenge of turning about onetime World wide web pioneer Yahoo, which has more than 700 million monthly unique guests to its news, sports, entertainment and email internet sites but has failed to develop innovative Net services and is far behind its competitors in supplying sophisticated tools for advertisers to buy advertisements on its web sites.
Yahoo on Tuesday reported second-quarter profit dropped 4% from a year earlier to $227 million, even though revenue slipped 1% to $1.22 billion.
-John Letzing contributed to this article.
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