You will be redirected back to your article in seconds

Yahoo CEO Marissa Mayer Will Reap $55 Million if She’s Fired Post Sale

Exec's 2015 compensation package worth about $36 million, down 14.5% from year prior

Yahoo chief Marissa Mayer has a golden parachute worth about $55 million that kicks in the event she is terminated within a year of the company being sold.

Per Yahoo’s amended 10-K filing with the SEC Friday, Mayer would receive $3 million in cash severance plus accelerated stock options and grants worth $51.8 million under the change-in-control terms of her contract.

Yahoo’s board is currently evaluating bids from prospective buyers for the Internet company’s core business. Verizon and private-equity firms are among the parties reported to have submitted acquisition proposals.

Last month, Yahoo modified the terms of its employee severance plans to clarify that a change in control of the company applies to sale of “all or substantially all” of its operating businesses.

Mayer, who turns 41 later this month, received a total compensation package of $36 million in 2015, according to the filing, a decrease of 14.5% from 2014. That included $1 million base salary, $14.5 million in stock and $19.9 million in options; in 2014, she received stock worth $11.8 million and options worth $28.2 million.

Yahoo also disclosed that it paid $544,061 for personal security services for Mayer in 2015, which was in addition to security provided at business facilities and during travel. “(D)uring 2015 Ms. Mayer faced specific security threats that we believed were credible,” Yahoo said in the filing. In addition, under the company’s Invention Recognition Award program, which is open to all full-time employees, Mayer last year earned a bonus of $1,125 for being among the inventors named in a pending patent application.

Mayer had been facing the prospect of getting booted from the CEO spot even before a sale, after activist investor Starboard Value launched a proposal to elect an entirely new board at Yahoo’s June shareholders meeting. But last week, Yahoo made a concession to Starboard’s demands, adding four directors nominated by the fund (including Starboard CEO Jeffrey Smith), so Mayer’s position appears safe for now.

Other top Yahoo execs would receive multimillion-dollar severance packages if they lose their jobs post-sale. Chief revenue officer Lisa Utzschneider would receive $19.9 million, CFO Ken Goldman would get $16.1 million and general counsel Ron Bell would take home $9 million in severance benefits.

In 2015, Utzschneider — previously Yahoo’s SVP of sales, who was promoted to the CRO position last July — received a comp package worth $10 million, comprising $600,000 base salary, a $1 million signing bonus and $8.4 million in stock. Per her original contract in October 2014, after Utzschneider joined Yahoo from Amazon, she was eligible to receive up to $16 million in restricted stock units.

Last year Goldman’s pay package increased 14.6%, to $14.95 million, and Bell received $4.5 million, 7.3%. David Filo, a Yahoo co-founder whose title is “Chief Yahoo,” was again paid a token $1 salary as he was the previous two years.

More Digital

  • Google Stadia is a Net Neutrality

    Google Stadia is a Net Neutrality Nightmare

    At the Game Developers Conference (GDC) this year, Google announced that it has taken up the long and ever-lengthening dream of the video game streaming service. Meant to replace the hefty, pricey, altogether confounding experience of buying and using various gaming hardware, Google Stadia will run video games on Google’s own hardware in a server [...]

  • crunchyroll logo

    Crunchyroll Raises Subscription Price to $7.99

    AT&T-owned anime subscription video service Crunchyroll is raising its monthly subscription price from $6.95 to $7.99 a month, it announced in an email to members Friday. It’s the service’s first price increase ever, according to a spokesperson. The new pricing will go into effect on May 1 for new subscribers, while existing members will see [...]

  • StyleHaul

    StyleHaul Shuts Down U.S. Operations, Lays Off About 65 Employees

    The axe is falling on StyleHaul: The fashion, beauty and lifestyle digital media and marketing company owned by RTL Group is shuttering U.S. operations, resulting the layoff of around 65 employees. StyleHaul offices in L.A., with about 55 employees, and in New York City, with around 10 staffers, are closing. RTL said StyleHaul’s U.K. operations, [...]

  • Bandsintown Platform Acquires Hypebot, MusicThinkTank

    Bandsintown Platform Acquires Hypebot, MusicThinkTank

    Bandsintown, a leading platform for letting music fans know about upcoming concerts by their favorite artists, has acquired Hypebot, a news site publishing stories about the music industry and technology, and its sister site MusicThinkTank. “I’m proud to share that Hypebot and MusicThinkTank have been acquired by Bandsintown,” wrote Bruce Houghton, the founder of the [...]

  • Star-Wars-The-Clone-Wars

    Netflix Will Lose Disney's 'Star Wars: The Clone Wars,' James Bond Movies in April 2019

    More Disney content is about to roll off Netflix: The 2008 “Star Wars: The Clone Wars” animated movie as well as six seasons of the subsequent “Clone Wars” series are among the titles set to leave the streaming service next month. According to Netflix, the original Lucasfilm movie along with “Star Wars: The Clone Wars” [...]

  • Vertigo Games Believes ‘Location-Based Virtual Reality’

    Vertigo Games Believes ‘Location-Based Virtual Reality’ Is Future of VR

    As virtual reality becomes more and more available, many developers are looking for new frontiers to expand the experiences offered by the tech. For Netherlands-based Vertigo Games, that next frontier is what they call “location-based virtual reality.” It’s essentially high-quality VR experiences where players aren’t tethered to a PC or even to the confines of [...]

  • GDC 2019: Google's Play For Gaming

    GDC 2019: Google's Play for Gaming Ubiquity, Rise of Ray Tracing, Store Wars

    The Game Developers Conference finished up Friday evening, wrapping one of the most exciting GDCs in recent memory with Google’s splashy entrance into AAA video gaming, the emergence of real-time ray tracing as a compelling technology for film, TV, and games, and the growing war between two global estore powerhouses: Valve’s Steam and the Epic [...]

More From Our Brands

Access exclusive content