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Firing its CEO will cost Yahoo big time

Firing its CEO will cost Yahoo big time
PHOTO COURTESY OF SHUTTERSTOCK

If you've been wondering who still uses the Internet portal Yahoo, and how they're making money, you're not alone. The company's core business has a market valuation of $0.00, by some estimates.

So, it's no wonder that the current gossip surrounding Yahoo is that it may be for sale. Which would leave its well-known CEO Marissa Mayer in a precarious place.

She's made news over the years for being extremely well paid, among other things. Last year, she made $42 million, according to USA Today, and that was up from $24.9 million in 2013.

So, she's not hurting for money. But, as it turns out, she'll be handsomely compensated if another company buys Yahoo and ousts her.

That's because there's a clause in her contract that stipulates how she'll be compensated if she's let go by a new owner. In fact, she's looking to make nearly $160 million for getting fired.

If Yahoo is acquired by another company and it lets Mayer go, her change-in-control clause guarantees that she won't need to look for a job anytime soon. Although her outplacement benefit is $15,000.

She'll receive just over $24,000 in continued healthcare coverage. And she'll get $3 million in cash.

But Mayer's big money will come from options. She'll receive $66.5 million in restricted stock acceleration and $88.3 million in option acceleration.

However, don't fume too much at Mayer's potential big payday. Since Yahoo's stock price has been falling, her compensation value is tumbling, too. She may walk away with just $108 million.

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Source: Fortune
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