Yahoo CEO Marissa Mayer to make $186 million on sale to Verizon: report

It’s undeniable that Yahoo CEO Marissa Mayer has had one of the toughest jobs in Silicon Valley, even if some of the trouble and turmoil was of her own making.

When she came on to lead the company in 2012, it was struggling to cope with Google’s ravenous growth in internet search and digital advertising, along with Facebook’s abrupt ascent as a digital ads giant.

And as Yahoo continued to flounder, hackers broke into its systems in 2013 and 2014 and carried out the two largest breaches of personal data in history. Yahoo’s board laid responsibility for the 2014 hack on Mayer, because senior company executives knew it happened in 2014 but failed to properly investigate it. More than $12 million was stripped from her 2016 and 2017 compensation as a result.

It turns out, that was chicken feed.

An April 24 regulatory filing from the company showed Mayer will be very, very well compensated for her time at the helm: she’ll make about $186 million from the sale to Verizon, according to the Wall Street Journal.

“That includes stock options valued at more than $84 million and restricted-stock units worth about $25 million at the current share price of $48.15. She also holds about 1.6 million Yahoo shares, worth nearly $77 million,” the Journal reported (paywall).

Because the $77 million in stock isn’t tied to the Verizon sale, some analysts point out that the amount Mayer could actually make from the sale should be $109 million. And she is also to receive $3 million in cash upon departure from the company.

Yahoo’s $4.5 billion sale to Verizon — which saw Verizon negotiate a $350 million discount because of the hacks — is to close in June. Many analysts believe Mayer will have no role in Verizon after the deal is done.

 

Photo: Yahoo CEO Marissa Mayer (AP Photo/NBC, Peter Kramer, file)

 

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  • drensber

    Well, at least she’ll be able to buy a starter home in the Bay Area, then. 😉

  • simonts

    This is what is wrong with our distorted form of crony capitalism: utter failure and the destruction of a company is rewarded by $186 Million. The Yahoo board should be sued by shareholders for every penny of that $186 Million that they awarded to Mayer without any requirement for, even semblance of, performance.

  • sd

    Next stop: a career in politics, in which Mayer (like Meg Whitman) will attempt to persuade people that running a large company is like running government — despite the destruction both of them oversaw at their respective companies and despite that whole misguided idea that business and government can be treated the same way. One can only hope Mayer is as successful as Whitman at this, too.

 
 
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