Yahoo CEO Marissa Mayer Earned $42 Million Last Year

Yahoo CEO Marissa Mayer Earned $42 Million Last Year
MIH83 / Pixabay

The Yahoo board sets annual performance goals for executives, and their pay depends on how closely they hit those targets. Marissa Mayer’s failure to hit expected levels of performance meant that $900,000 was shaved off her bonus and $12.4 million taken away from her stock awards, due to Yahoo’s struggles in 2014, writes David Goldman for CNN.

Missed targets see pay docked

2014 revenue was equal to 92% of the $5 billion performance target set by the board, while the company attained 93% of the $1.5 billion target for adjusted profit. As a result Marissa Mayer received only 55% of her $2 million target bonus, taking home $1.1 million. She also received just 69% of a possible $40 million in stock awards, taking home $27.5 million worth of options and grants.

SALT New York: Canyon, Mudrick, Fortress And Sculptor On Finding Distressed Value

At the 2021 SALT New York conference, which was held earlier this week, one of the panels on the main stage discussed the best macro shifts coming out of the pandemic and investing in value amid distress. The panel featured: Todd Lemkin, the chief investment officer of Canyon Partners; Peter Wallach, the managing director and Read More

Had the company hit its targets, Mayer’s pay packet would have risen to $55 million. Despite not attaining set goals, the Yahoo board was full of praise for Mayer and her work. “Ms. Mayer provided strong leadership overall to the company,” the board said in a proxy statement. “She significantly improved the company’s reputation and revitalized the company’s employee base.”

Marissa Mayer was also praised for growing Yahoo’s mobile revenue, increasing the pace of innovation and negotiating a deal to replace Google as the default search engine on Mozilla’s Firefox browser.

Marissa Mayer’s pay packet boosted by Alibaba holding, one-time stock options

The poor financial performance in 2014 was outweighed by Yahoo’s strong stock performance since Marissa Mayer took over as CEO in 2012. Shares in Yahoo have tripled in the three years since, due in large part due to the company’s stake in Alibaba. If the company stock price had stayed at the same level, Mayer would have earned $17.1 million last year.

Her paycheck this year was higher than normal due to a number of one-time stock options and signing bonuses which matured in 2014, boosting Marissa Mayer’s earnings by 68% from 2013. Should Mayer remain at the company her pay will dip back down to around previous levels.

Marissa Mayer has come under pressure from activist shareholders such as Starboard Value LP due to her inability to revive Yahoo’s core business, despite nearly three years in charge. However she survived a recent storm when not a single investor filed proposals for a leadership change, and she looks set to continue in her post.

Updated on

Previous article Warren Buffett: “It’s Hard To Beat Coca-Cola”
Next article Large Global Banks Still Too Big To Fail? Polling Wall Street
While studying economics, Brendan found himself comfortably falling down the rabbit hole of restaurant work, ultimately opening a consulting business and working as a private wine buyer. On a whim, he moved to China, and in his first week following a triumphant pub quiz victory, he found himself bleeding on the floor based on his arrogance. The same man who put him there offered him a job lecturing for the University of Wales in various sister universities throughout the Middle Kingdom. While primarily lecturing in descriptive and comparative statistics, Brendan simultaneously earned an Msc in Banking and International Finance from the University of Wales-Bangor. He's presently doing something he hates, respecting French people. Well, two, his wife and her mother in the lovely town of Antigua, Guatemala. <i>To contact Brendan or give him an exclusive, please contact him at [email protected]</i>

No posts to display