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Marissa Mayer will get severance package worth $55million from Yahoo
Yahoo gives CEO Marissa Mayer severance package worth $55M
There's been little light for Yahoo in the time Marissa Mayer has been at its helm. The company is trapped in a spiral of declining revenues, and in February it said that its core assets are up for sale.
On Friday, the company disclosed the packages that will be available to key executives if they are ousted in the event of a sale. Mayer will be paid $54.8 million in cash and stock if she's removed from her job within a year of a sale.
Yahoo has no deadline for reaching a decision on a sale, but The Associated Press reported Friday that analysts "expect a deal to be struck within the next two months at a price ranging anywhere from $4 billion to $10 billion."
Even as Yahoo looks for a buyer for its main internet business, it's been mired in conflict with investors. The company reached a settlement with activist hedge fund Starboard Value on April 26, agreeing to put four Starboard nominees on Yahoo's board of directors. Starboard CEO Jeffrey Smith will be one of three on a committee assessing bids for the sale.
The fact that Yahoo's financial situation has gotten worse during Mayer's tenure will make her pay package a controversial issue. Yahoo shares dropped 34 percent in 2015, while Mayer made $14 million. (She would have earned nearly $36 million if shares had risen.)
The company expects revenue to dip an additional 15 percent this year, to about $3.5 billion.
"I don't think this management team has done anything to merit a huge payout," Eric Jackson, managing director of SpringOwl Asset Management, told the AP.
Yahoo declined to comment to reporters on Friday.
Other Yahoo executives will also get substantial payouts if they're fired after a sale. Yahoo's Chief Revenue Officer Lisa Utzschneider stands to get $19.9 million, Yahoo CFO Ken Goldman would get $16.1 million, and the company's general counsel Ronald Bell would get $9 million.
Source: techgig.com
