$55 million for Melissa Mayer to leave Yahoo
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And this is why companies fail.
The CEO of the embattled online news site, currently trying to sell itself, is entitled to severance benefits valued at $54.9 million in case she is terminated without cause, according to a regulatory filing after the market closed Friday. The potential payout would also be triggered by a “change of control,” which includes the sale of the company, according to the filing.
Mayer’s potential payout includes cash severance of $3 million, $26,324 to continue her health benefits, $15,000 for outplacement, and — if that’s enough — nearly $52 million worth of accelerated restricted stock and options.
But wait. That’s just what Mayer gets if she leaves. Mayer was already paid $36 million in 2015 as her regular annual compensation. That total pay package was down nearly 15% from the prior year, but is still well above the median of roughly $12 million paid by executives in the Standard & Poor’s 500. Mayer was paid $42.1 million in 2014, making her the most highly paid female CEO in the S&P 500.
Meanwhile, Yahoo shareholders continue to suffer. The value of Yahoo’s stock lost roughly a third of its value last year. Shares closed Friday at $36.60. And there’s a reason the stock is headed in the wrong direction. Yahoo went from making $7.5 billion in 2014 to losing $4.4 billion in 2015.
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