New Yahoo CEO Could Earn $26 Million in 2012, Cutting 401(k) Plan
Former PayPal president Scott Thompson, who was named the new CEO of troubled Internet icon Yahoo last week, will have the opportunity to make as much as $26 million this year after he officially takes the reins on January 9th. Yahoo divulged its new chief executive's pay package in a regulatory filing on Friday. Thompson is guaranteed a base salary of $1 million in 2012, a figure that could double if the company reaches certain performance levels, and incentives kick in. In addition, Thompson will also receive lucrative stock grants, the first of which will net him $11 million this year, and that's in addition to the $5 million grant he received as a signing bonus.
Thompson's earnings from Yahoo don't stop there, either, as the company will also reimburse its new leader for bonuses and stock awards he would have gotten from eBay, whose PayPal online payments business he had been in charge of. That amount includes $6.5 million for a grant of restricted stock he lost plus $1.5 million for lost bonuses. Add it all up and that's $26 million dollars ($25m guaranteed), not bad pay if you can get it, but barely over half of the annual compensation for Thompson's predecessor, Carol Bartz.
Fired by phone call in September, Bartz was paid a reported $47 million in 2009, her first year on the job. However, some executive compensation reports note that most of that comes in the form of a paper gain based on stock options that may never pay out. Yahoo has never disclosed the amount it paid Bartz as severance, but sources close to the matter have said it was around $10 million.
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