The details of Yahoo CEO Marissa Meyer's lucrative pay packet

The details of Yahoo CEO Marissa Meyer's lucrative pay packet

Summary: The release of Yahoo's offer letter gives the new Yahoo CEO a base of $1 million annually, plus a number of stocks and bonuses.

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TOPICS: Tech Industry
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The release of Yahoo's offer letter gives the new Yahoo CEO a base of $1 million annually, plus a number of stocks and bonuses.

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Yahoo filed regulatory documents with the SEC on Thursday, disclosing how much it will pay its new CEO Marissa Mayer. The entire offer letter has been submitted, dated July 16 2012.

The compensation package could result in salary, bonuses and stock of over $70 million if the newly appointed CEO stays at the company for five years.

The pay package includes $1 million in annual salary -- balancing out to $83,333.33 per month. Meyer can also make $2 to $4 million through an annual bonus scheme.

The new Yahoo CEO's equity awards rack up to $12 million in company stock, split between restricted stock units and options.

After leaving Google, the company Meyer originally joined 13 years ago as its 20th employee and first female engineer, Yahoo has offered $14 million in "making whole restricted options" for forfeiture of compensation from Google stocks.

She will also be eligible to participate in an incentive plan that will pay her 200 percent of her annual base salary with a 2012 maximum of 400 percent of her salary if she exceeds her targets. Realistically, this could bring in between $2 million to $4 million more per year.

The offer letter also states that Mayer will receive a "one-time retention equity award" of $30 million.

Within hours of the announcement of her new appointment being made, Mayer also said that she and her husband Zachary Bogue were expecting their first child, due in October. Mayer has said that Yahoo directors knew about her condition during the hiring process, and the new CEO plans to work throughout a short maternity leave.

Despite weak financial results, flat net revenue and a marginal decrease in second-quarter profit announced this week, Yahoo remains one of the world's most popular websites, attracting over 700 million visitors per month.

More: Five challenges for Yahoo's new CEO Marissa Mayer | Five reasons why Marissa Mayer's move to Yahoo is great | CNET: Mayer announces her pregnancy | Marissa Mayer named Yahoo CEO | The bio that made Mayer a CEOPictures: Yahoo's parade of CEOs | 5 things Marissa Mayer will change about Yahoo | Yahoo statement | 

Topic: Tech Industry

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14 comments
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    • Five years with Yahoo? Surely you jest.

      The likelihood of Yahoo surviving five more years is slim-to-none. They have nothing compelling to offer, and are just one more of many small competitors in a market dominated by Google. Five years? I give them two or three at the most.
      thetwonkey
  • I had no idea who Marissa Meyer was

    so I googled her name.
    Your Non Advocate
  • Culture of Compensatory Excess

    So there you have it, another example of overcompensating an executive just because that's the way business and our society overall is wired today.

    I have nothing against Ms. Meyer personally, she's just playing by the current rules of the game.

    But make no mistake, this trend has to stop at some point...
    spindruiz@...
    • Overcompensating?

      Maybe. But is that for you to decide? Yahoo seems to feel they can afford to pay it, and that she is worth it. Time will tell. I'll tell you what, though...as much as I feel I am underpaid (who doesn't, including many who are, and also many who aren't), I'm sick and tired of the jealousy and class warfare talk. Anyone who wants to go start up a business of their own and make it big, HAVE AT IT! You probably won't want to hear anyone holler at you for how much you rake in if you make it big.

      The bottom line is, most of us are average (I know, I know...that's not quite mathematically correct...but you know my meaning!), and the few who really are cream of the crop are just that much better at getting very difficult engineering feats done, or at making really game-changing things happen in business. Sure, there are some who get promoted beyond their capabilities, and are overpaid...but do they last long, with investors having a "what have you done for me lately" mentality? No. See Mayer's predecessors for case studies that prove this very point. Will she make Yahoo boom again? Undetermined yet, and a difficult undertaking. But...as one of the earliest engineers at Google, she clearly was and is talented as an engineer, and by all accounts, as a manager as well, and is a charismatic leader -- this is not a combination that is so easy to come by.

      So, for my $0.02, lay off the jealousy, and let those who excel reap the rewards for doing so -- they didn't get to the top by sitting on the couch!
      Techboy_z
      • Jealous? Really?

        Did you even think about what I wrote before jumping to your "class warfare" conclusion?

        This kind of executive income disparity started over 25 years ago so now it is an accepted practice however unjustified.

        Back then the typical CEO-to-worker salary ratio was 10:1. Today it is closer to 100:1.

        You may think that's just fine, but I've been off the couch long enough to know better.
        spindruiz@...
        • Now it's OK

          Now that you have written -two- notes spewing class warfare hoo-hah, is it OK for us to jump to a "class warfare" conclusion concerning you?

          You don't know you're doing it, do you. We get that a lot.
          Robert Hahn
          • Those are the kinds of hoo-haw disparities that bring you joy, right?

            As for questioning what he's doing, how about you and your short-term appreciation for history? Do you know what these kinds of disparities eventually lead to? Or like every other blind bandit, do you not care -- well, until there's no turning back.

            Enjoy the spoils while you rake them. Pay backs a bitch, and it always comes. It's just a matter of time -- as always.
            klumper
  • Maybe she'll follow the lead of Lenovo's Yang Yuanqing ...

    ... and donate a bunch of her compensation to others who truly need it -- both at Yahoo! and elsewhere.

    I'm not saying she has to work for free. But her compensation package is obviously much, much more than generous. Heck, she could probably buy traffic to Yahoo! just by paying users for clicks, thereby ensuring her efforts would boost Yahoo!'s traffic and value ... which would surely earn her some of those performance-based bonuses.
    imalugnut
    • Lol

      Her performance bonuses would not be valued at more than the goals required to reach them. That would be a major dunce-cap moment for the board and the folks in HR and Accounting.

      As for the "more than generous" comment and whether she should donate a large portion of her earnings...and I'm not saying you are necessarily one of these...but the folks who are so rabidly anti-wealth can just calm down. How do we know that she (and other highly-paid execs) don't already donate a goodly amount? Yeah, I do happen to think the execs where I work are overpaid. But I also believe that in a truly free economy, it's up to *ME* to go make something happen if I feel I'm worth more and deserve more for my labor! Those who do always spew the jealousy-ridden talk get old pretty quick.
      Techboy_z
  • The way they throw money at these overpaid execs

    only to dump them a few years later is criminal. The greedy ass USA as usual leads the way here, as it continues to slide into its capitalism-at-all-costs abyss.
    klumper
  • She might even make more than an average professional athlete...

    The average NBA player makes $5.5 million a year (I Yahoo!ed it ;-) Each team can have 15 players, so your average salaried player might only be a role-player coming off the bench to give the star a rest (I know the average and median may not be close due to some of the large contracts...).

    Turn a $20 billion company around and and make as much as a 7th man on a mediocre NBA team (liberally applying "average" again)... I don't think she is making too much by that measure.
    mcfortman@...
  • The way I see it is..

    she oviously has the inside tech track by her years with google AND she is smart as heck. God knows, yahoo needs someone who knows something about anything right now. A lot has been nade by her lack of media experience. So what? She can listen to experts. What I don't know is if yahoo can be saved from their own stupidity. Even a bright and talented CEO can't single handedly save a ship that is destined to sink. Can the board get out of the way?
    droidfromsd
  • Yahoo CEO Marissa Meyer

    i hope she does not mess up yahoo.com like they google
    ttx19
  • so what your saying is

    If yahoo starts doing badly will she return the money, will she get fired immediately or will the board give her more time and cut jobs while she keeps the money. And we already know that the avg CEO and there counterparts do not give that much back in charity at all. Its not about class war its not about salary about whats fair compensation vs consequences of that pay. for Her to get that much money someone else has to pay. if we use the the sports analogy for the athletes to get that much the money must come from somewhere the owner is not going to take a cut in pay he will raise ticket prices and concession reduces the the others salary or get cheaper vendors to handle the concession. So for her to get that money the money has to come from somewhere its a matter of fact. so when the guy said it can not continue he is right, its a numbers game. So we have to ask our self is she really worth it does she really need that money and what is the cost to us the people that will use yahoo or work at yahoo. On a side note yahoo is doing badly not because its inferior to google its cause its to big try to do to much and have bought to may companies before the bobble burst and have not integrated any of them
    medric