Yahoo! Inc (YHOO) disclosed in regulatory filings released Thursday the pay package that helped lure its new Chief Executive Officer Marissa Mayer away from Internet rival Google Inc (GOOG).
Mayer, who is estimated to have made $300 million during a 13-year career at Google, will have a total compensation package of more than $100 million if the the ailing internet company hits all its performance targets over the next five years.
The 37-years old Mayer will be paid an annual salary of $1 million ($83,333 per month) and will be eligible for a bonus of up to $2 million. She will also receive about $12 million in stock options and RSUs (restricted stock units), which will vest over the next 3 years, subject to satisfaction of performance criteria, according to the filing. The strike price of the options was not disclosed in the filing.
In addition, Mayer, Yahoo’s eighth ever CEO, will receive a retention equity award with an aggregate value of $30 million that will vest over 5 years. Half of that will be granted as RSUs on July 26, 2012, and the rest in the form of a performance-based stock option that is expected to be granted in November 2012. Finally, Mayer will get $14 million in restricted stock units “to partially compensate her — Mayer was employee number 20 at Google — for “forfeiture of compensation from her previous employer.”
A self-described “geek” with a master’s degree in computer science from Stanford, Mayer quit Google on Monday and joined Yahoo as CEO on Tuesday, the same day the web portal reported second-quarter profit dropped 4% y/y to $227 million, while revenue slipped 1% to $1.22 billion.
Onetime Internet pioneer Yahoo remains one of the world’s most popular websites, with more than 700 million monthly visitors, according to the company.
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