Marissa Mayer to receive nearly US$60m in compensation as Yahoo! CEO

20 Jul 201271 Views

New Yahoo! CEO Marissa Mayer. Image from Wikimedia Commons

Yahoo’s new CEO Marissa Mayer could be raking in close to US$60m to turn the company’s fortunes around, Yahoo! revealed in a regulatory filing. The amount includes salary, equity grants, stock options, and even a US$30m one-time retention award.

Mayer (37), who is Google’s former vice-president of Location and Local Services, is receiving compensation at Yahoo! that is largely based on performance.

An employment offer letter puts Mayer’s salary at US$$83,333.33 per month – that’s US$1m a year. Add to that an annual bonus of up to 200pc of the base salary, which is $2m. If she exceeds targets, she could also receive up to a 400pc bonus, which is US$4m.

She also receives an equity award for 2012 of US$12m in stock (US$6m) and options (US$6m) that vests over three years.

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Then there’s the US$15m in stock and US$15m in options for an up-front, one-time retention reward, vesting over five years, as well as the make-whole payment of US$14m for the stock she left at Google.

And if Mayer wanted a lawyer to review and negotiate the employment offer letter, Yahoo! would even pick up the tab, up to a maximum of US$25,000.

The company will also reimburse her for security and travel expenses.

Tina Costanza has held senior editorial positions at daily newspapers in Ottawa and Toronto