Yahoo chief Marissa Mayer will rake in $186 million after its sale

Posted April 27, 2017

So, it has been reported that Yahoo's CEO will be paid $184 million when the sale of Yahoo to Verizon will be completed. At the most recent closing price of $48.15 per share, that's worth about $216 million. This is known as 'golden parachute' compensation, where she is due to receive $3 million in cash, $24,000 in benefits, and $19,971,367 in equity.

A series of acquisitions, such as the social network Tumblr, also failed to pay off for the group, and Yahoo looked to separate the Alibaba stake from its core operations.

Verizon agreed to buy Yahoo past year for $4.83 billion, although the companies renegotiated a lower price after the security breaches were disclosed.

Under Mayer's leadership, Yahoo experienced two unprecedented security breaches affecting more than 1 billion users accounts - with the 2014 incident traced to Russian spies.

Dozens of lawsuits followed, and Verizon leveraged the scandal into a $350 million discount off the initial price for Yahoo.

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Yahoo investors are set to vote on the deal this June. A yes vote, which is widely expected, would end Marissa Mayer's largely unsuccessful five-year effort to restore the internet pioneer to greatness.

With that having been said the CEO's payout consists of Yahoo stock, stock options and restricted stock units.

Mayer's plan was initially to expand Yahoo's content business. This will no longer include the valuation of stock she has already sold or the bonus she made a decision to give up due to the massive cyber security breaches revealed earlier a year ago. And though reports have pointed to her exit, Mayer has said only that "for me personally, I'm planning to stay". Mayer is also expected to receive a $23 million severance package, bringing her compensation for her five years in charge of Yahoo to over $200 million. To make matters worse, Verizon threatened they may pull out of the deal as clearly the security measures at Yahoo were subpar.

"As much as people deride her performance, and rightly so to some extent, the reality is she did seemingly add a lot of value from a stock-performance perspective".

As New York Times points out, the massive compensation being received by Yahoo's soon-to-be former chief executive is essentially based on the "208 percent increase in Yahoo's stock price" since she joined the venture from Google back in 2012.