Mayer gets $70 million pay package to lead Yahoo

Thu Jul 19, 2012 6:58pm EDT
 
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By Alexei Oreskovic and Peter Lauria

(Reuters) - New Yahoo Chief Executive Marissa Mayer's compensation package could total more than $70 million in salary, bonuses, restricted stock and stock options over five years, according to a regulatory filing made by the company Thursday.

Mayer's pay package is broken out into $1 million in annual salary, as much as $2 million in an annual bonus, and $42 million in stock options and other awards, as well as $14 million in "make whole restricted options" for forfeiture of compensation from Google Inc.

As the first female Google engineer and one of its earliest employees, Mayer's net worth is already estimated to be as much as $300 million.

Yahoo's hiring of Mayer as CEO from Google earlier this week caught analysts, investors and even some employees by surprise. Mayer, 37, edged out presumed front-runner and acting CEO Ross Levinsohn to become Yahoo's third CEO in a year.

Industry observers believe Mayer's selection over Levinsohn is a signal that Yahoo is likely to renew its focus on Web technology and products rather than beefing up online content.

Her appointment caps a tumultuous year at Yahoo. In May, Scott Thompson resigned as CEO after less than 6 months on the job as a controversy flared up over his academic credentials. Thompson replaced the controversial Carol Bartz, fired in September after failing to revitalize Yahoo.

Thompson's total compensation at hire was valued at $27 million. He got no severance but was able to keep the $7 million in compensation he got for leaving Paypal. Bartz got more than $10 million in severance when she was fired last year.

A self-described "geek" with a master's degree in computer science from Stanford, Mayer has frequently championed bringing more women into tech.   Continued...

 
Marissa Mayer poses at Google's Mountain View, California headquarters, in this February 24, 2009 file photo. REUTERS/Noah Berger/Files