Yahoo CEO Marissa Mayer could receive severance worth $55 million

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By Larry Banks

There has not been much joy for search giant Yahoo of late, especially while Marissa Meyer has been running the company. The firm is experiencing declining revenues, and in February announced its core assets are up for sale.

Last week the firm revealed the packages that will be available to executives if they are ousted if a sale goes through. Mayer will receive $54.8 million in cash and stock if she’s removed from her job within a year of the sale.

There is currently no deadline on a decision for the sale, but The Associated Press on Friday reported that analysts “expect a deal to be struck within the next two months at a price ranging anywhere from $4 billion to $10 billion”.

The company has lately been suffering from conflict with investors – they reached a settlement with hedge fund Starboard Value on April 26th, agreement to put four of their nominees on Yahoo’s board of directors. Starboard’s CEO Jeffrey Smith will also be one of three people on a committee looking at bids for the sale.

Mayer’s package will be a controversial figure, especially as Yahoo’s financials have become worse since she took over as CEO. Shares in the web giant have fallen 34 percent in 2015, while at the same time Mayer made $14 million.

The company expects revenue to dip an additional 15 percent this year, to about $3.5 billion.

“I don’t think this management team has done anything to merit a huge payout,” Eric Jackson, managing director of SpringOwl Asset Management, reportedly told the AP.

Other Yahoo executives will also receive huge payouts if they are fired after the sale. Yahoo’s Chief Revenue Officer Lisa Utzschneider is set to get $19.9 million, Yahoo CFO Ken Goldman would get $16.1 million, and the company’s general counsel Ronald Bell would be given $9 million.

SOURCE: Ars Technica.

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