Yahoo CEO Marissa Mayer may receive $158 million as severance payment

Yahoo CEO Marissa Mayer
Yahoo CEO Marissa Mayer could receive $158 million – based on the calculation for 2014 – as severance payment if its board decides to sell the core Internet business and sack her.

Mayer is one of the country’s best-paid CEOs. The severance payment is almost four times of the total payment she received in 2014. Last year, Mayer received total payment of $42 million against $24.9 million in 2013.

Mayer joined Yahoo from Google, after spending 13 years at the Internet search engine giant. But Mayer could not bring enough life to Yahoo. Currently, Yahoo’s nine member board is looking for a buyer for its Internet search business.

She has a highly lucrative change-in-control severance benefit in place. Her severance plan — which would kick in if she is terminated without cause due to a change of control of the company — would have been worth $157.9 million in 2014, according to a company tabulation in corporate filings, USA Today reported.

Mayer’s latest change-of-control payout for includes:

Cash severance: $3 million
Continuation of health-care benefits: $24,331
Outplacement benefits: $15,000
Restricted stock acceleration: $66.5 million
Option acceleration: $88.3 million
Total: $157.9 million

Yahoo Executive Team
Yahoo named Marissa Mayer as CEO, president and director in July 2012.

At Google, Marissa Mayer served as vice president of Local, Maps, and Location Services — responsible for its local and geographical products, including Google Maps, Google Earth, Zagat, Street View, and local search for desktop and mobile.

Before that position, she served as Google’s VP, Search Products and User Experience, and in a variety of other capacities after joining Google in 1999.

Marissa serves on the board of directors of Walmart and Jawbone, and on the boards of various nonprofits, including the San Francisco Museum of Modern Art and the San Francisco Ballet.

Update on Yahoo sale

Reuters reported that Yahoo board is still considering several options to revive the Silicon Valley-based Internet search company. Friday was the third day of the board meeting in the U.S.

One option on the table for the nine board members is whether to sell Yahoo’s core business, which includes Mail, its sports sites, and advertising technology. Media and Internet firms are potential buyers for Yahoo’s core business. Recently, Verizon acquired AOL.

The company is also in the process of deciding whether to continue with the spinoff of its $30 billion stake in Chinese e-commerce company Alibaba Group Holdings.

According to tech news site Re/Code, Yahoo’s board finished its meetings without a decision on the Alibaba spinoff.

In January, Yahoo CEO announced the plan to spin off the Alibaba stake into an independent business. Yahoo said the deal would be tax-free, but the U.S. Internal Revenue Service has declined to verify that. Yahoo shareholders will face an outgo of $12 billion.

Baburajan K
[email protected]

Related News

Latest News

Latest News