The Associated Press reports that Marissa Mayer, the new Yahoo CEO, will get a compensation package that is worth $59 million. The sum is much bigger than the ones received by the former CEOs because Yahoo wanted to convince Mayer to stay with them for at least five years.
Yahoo was so determined to get Marissa Mayer on their team that they offered her one of the biggest compensation packages ever. The new CEO will, thus, receive $59 million within the following years. However, the value of the compensation package could grow or decrease in this period of time, depending on the evolution of the Internet company.
Based on the regulatory filing provided by Yahoo Inc. on Thursday, Mayer’s annual salary will amount to $1 million. In addition, she will get a $2 million bonus, as well as restricted stock and stock options worth $12 million. Nevertheless, she will gradually earn the right to use the last bonuses over the next three years. Given that Mayer had a successful career at Google, Yahoo had to offer her a $30 million award in order to convince her to switch teams. The one-time retention award will be available if and only if she agrees to stay with the company for at least 5 years.
Analysts claim Mayer would have received forfeiting money if she had continued to stay with Google. As a consequence, her loss was compensated by Yahoo with a restricted stock of $14 million. The payments will be staggered until 2014, but the first $4 million are due to be paid this year.
Neither Google, nor Mayer has ever mentioned the sum of money that the 37-year-old CEO obtained during her stay at the Internet search leader. It is, nevertheless, believed that she has made a fortune when the company went public in 2004. She accumulated many stock options since 1999 when she first started working for Google and their price sore from $85 to $750.
Yahoo further added that the value of the compensation package is related to Mayer’s ability to restore the financial stability of the company. Thus, it is almost impossible for analysts to estimate the exact sum of money that the chief executive will receive in the following years.