Embattled News Portal Yahoo will offer its CEO Marissa Mayer a grand parting with a big severance pay. It may be almost $55 million if she is fired without a cause.
This became evident from Yahoo’s regulatory filing on Friday where it disclosed the size of its executive pay packages, with better clarity on CEO’s severance pay.
Mayer’s payout will cover cash severance of $3 million, $26,324 on health benefits, $15,000 for outplacement, and $52 million worth of stock options, reports USA Today.
In 2014, Mayer was the most highly paid female CEO in the S&P 500 with a pay pack of $42.1 million. In 2015, Mayer was paid $36 million as regular annual compensation, after a marginal pay cut.
The regulatory filing has sent a message of reassurance and security to the Yahoo executives that their severance packages will be handsome. Getting fired looks like a sure possibility as the sale of Yahoo is only just a matter of time.
However, eyebrows have been raised over such a largesse on Mayer as her captaincy has been held responsible for dooming the company’s revenue base, earning the nickname “Silicon Valley’s Titanic.”
That frustration was expressed by a shareholder. “I don’t think this management team has done anything to merit a huge payout,” Eric Jackson, a Yahoo shareholder told the Associated Press, reports Gizmodo.
Many shareholders hold Mayer responsible for misspending Yahoo’s diminishing revenue in failed startups, Tumblr, and Katie Couric.
Meanwhile, reports suggest that Marissa Mayer is yet to stop her high spending habits despite the company’s struggle for survival.
The latest example has been the company shelling out a “multimillion-dollar” retention package to accommodate human resources boss Sandy Gould, who was planning to join some other company.
Mayer made a costly relocation of Gould to the New York office, just to supervise “culture and communication,” according to a source.
Insiders say there was “no sense in the NYC move other than Sandy and spouse wanted to live there.”
The deal came after Mayer “found out that he was going to work for someone she resents, and it literally drove her insane, so she made this crazy deal to keep him.”
A Yahoo source has said the HR man has agreed to continue. Meanwhile, at Yahoo’s Sunnyvale headquarters, Gould’s duties have been passed on to John Matheny, a senior executive, reports New York Post.
In the weekend, Mayer made her presence felt at the White House Correspondents’ Association annual dinner, which complimented President Barack Obama.