Yahoo CEO Marissa Mayer will be replaced when the firm is sold to Verizon. Board member Thomas McInerney, 52, a formerly of InterActiveCorp and Ticketmaster, will take her place, Yahoo said in a Securities and Exchange Commission filing produced Monday.
Ms. Mayer would receive a compensation package totaling $23,011,325 if she were to be terminated without cause or for “good reason”. This amount is lower than the
$44 – $55 million golden parachutes granted Mayer in previous Yahoo filings. A person familiar with the situation reported that the reason for the lower payment is based the value of stock options that have vested since the earlier filings.
Yahoo announced on March 1, 2017 that, due to data breaches, the board stripped
Ms. Mayer of her $2 million annual bonus for 2016. Additionally, Ms. Mayer forfeited her 2017 annual restricted stock and stock options grant valued at least $12 million.
Mr. McInerney is expected to receive $2 million in annual base salary, which is double Ms. Mayer’s base salary. He is also eligible for a performance-based annual incentive of up to $2 million. According to the SEC filing, he is eligible for “long-term deferred compensation” grant which could be worth up to $24 million.
Yahoo and Verizon have said the sale will close between April and June, 2017. The sale was threatened by earlier revelations that a pair of data breeches impacting Yahoo users’ personal data had occurred. As a result of the hacks, Yahoo was forced to cut the sale price by $350 million.
When Verizon agreed to buy Yahoo for $4.8 billion last summer, it also agreed to pay compensation on Yahoo’s management team, which included Ms. Mayer. This deal allowed
them to collect the full amount of their stock awards after the merger, without any performance-related stipulations.
Once the sale is complete, Yahoo will become Altaba. The new company will manage assets in the Chinese e-commerce giant Alibaba in addition to Yahoo Japan. Ms. Mayer’s role in either Verizon or Altaba is currently uncertain. However, according to the filing, she will not sit on the Altaba board.