Amidst speculations that Yahoo CEO Marissa Mayer might leave, analysts have noted that she could make a fortune if she quits after Yahoo clinches a sale deal.
Media reports are all excited about Mayer’s estimated severance pay if she will go after the deal; some of them refers to it her “golden parachute.”
This is amidst rumors that Yahoo is busy working on a sale deal, reports CNN. According to a report in the CNBC, Yahoo is negotiating a deal with an unnamed bidder and the report hinted that it could be Verizon and TPG Capital.
The CNN report said a sale deal would help Mayer take home $37 million, unlike the $12 million she would be getting if she goes before the sale. Post-sale, Mayer can take home three years’ salary ($3 million), $9.5 million in stock awards that would mature in 2016 and another $24.5 million worth of awards that would vest in the future.
Furthermore, if Mayer does quit after a sale deal, she will get the privilege of releasing all her stock awards. Otherwise, unlocking stock awards entitled to the CEO would take many years. And she would have to stay with Yahoo for a prescribed period of time.
If Mayer is terminated before Yahoo is sold, her payout would be just $12.5 million that will cover $1 million in salary, a $2 million cash bonus and $9.5 million in stock.
Mayer is under pressure to quit after shareholder Starboard Value called for the removal of Yahoo’s current board that includes Mayer as well.
A spokeswoman for Yahoo declined to comment on the rumors floating around CEO Mayer’s “golden parachute.”
Meanwhile, Yahoo has set an April 11 deadline of for the bidders looking to buy its core business. Potential bidders will have to submit their preliminary proposals on or before that, the Wall Street Journal reported.
A report in the Business Insider also said Yahoo had sent letters to potential buyers, asking them to list their interest with the price they are willing to pay.
According to reports, nearly 40 companies have signed up for non-disclosure agreements with Yahoo for accessing its materials. Some of the potential buyers include Verizon, AT&T and private equity firms TPG and KKR.