You are hereBlogs / WcP.Market.Watch's blog / Yahoo, no more: sold. Mayer's gain: "$365 million, 5 years at Yahoo". Who said in 2012 "Fool's bargain"?

Yahoo, no more: sold. Mayer's gain: "$365 million, 5 years at Yahoo". Who said in 2012 "Fool's bargain"?


By WcP.Market.Watch - Posted on 10 January 2017

If someone's gain at anyone's loss: who is the fool if there's a fool's bargain?
July 07, 2012: "Mayer was making a fool's bargain
to choose Yahoo over Google as the ambitious executive
shocked the tech world by leaving Google to become Yahoo’s new CEO"
Dec 14, 2015: "If she stays on board for another year and a half,
Mayer will make $365 million for 5 years of work at Yahoo"
"The vast majority of her pay isn't tied to Yahoo's performance as a company"
Jan 10, 2017: Yahoo is sold to Verizon.
"Yahoo's board voted to alter its change-in-control provision
to include the sale of a major business unit as well; and with that,
Mayer's $123 million payday was created."
"Without that vote, Mayer would have walked away with "only" around $14 million."

(quote)

Dec 14, 2015
If she stays on board for another year and a half, Marissa Mayer will make $365 million for five years of work at Yahoo.
The vast majority of her pay isn't tied to Yahoo's performance as a company
- it's tied to Yahoo's stock price.

Jan 10, 2017
It’s the end of an era: Yahoo as we know it is no more. While we already knew most of the venerable company was being sold to Verizon – a $4.8 billion purchase – the remainder of company today announced that it’s renaming itself to ‘Altaba,’ according to TechCrunch. Altaba. Seriously. It’s sounds a bit like a portmanteau of defunct 1990’s search engine Altavista and Alibaba, both of which are either partially or wholly owned by the company. This is the portion of the company that maintains a 15 percent ownership of Alibaba and 35.5 percent stake in Yahoo Japan. Altaba will operate as an investment company from here on out. According to a filing with the SEC, all but five of Altaba’s board of directors will step down upon the conclusion of the deal, namely David Filo, Eddy Hartenstein, Richard Hill, Jane Shaw, Maynard Webb, and Marissa Mayer.

Jul 29, 2016 (Updated from July 26 with response from Yahoo)
Marissa Mayer’s Payday Is Even More Insane Than You Think: After the Verizon (vz, -0.25%) deal was announced on Monday, the Internet erupted in outrage that Yahoo CEO Marissa Mayer could collect as much as $55 million. That's the figure Yahoo (yhoo, +0.38%) stated in April that Mayer could collect if the company were sold and more-than enough to get observers who think Mayer has not done a great job to declare her pay unfair, and another sign that corporate compensation is corrupt.

But, here's the thing, that widely reported $55 million figure grossly understates what Mayer is likely to pocket after the deal closes.

The real number: $122,578,795.

With an assist from top compensation consultant Brian Foley, here's how I get to that figure:
-- The number that Yahoo disclosed in its financial filings in April was based on the company's stock price at the end of 2015. But Yahoo's shares have risen 16% since then, in part on speculation of the Verizon deal. At Yahoo's closing price of $38.76 on Tuesday, Mayer's stock options, which would instantly all vest after the deal if she were to leave the company, would net her $42 million.

-- Mayer also has 650,290 shares of restricted stock that she would immediately be able to sell if the deal with Verizon goes though, producing another $25 million. That includes a portion of the 353,356 restricted stock units, or nearly $14 million worth of Yahoo shares, that the company granted Mayer in 2016, but which Yahoo didn't include in the $55 million estimate Yahoo made in April. Half of those shares are supposed to be performance-based, meaning Mayer won't normally get them unless Yahoo met certain goals, like earnings targets. This past year, Mayer had to forfeit just over 400,000 of those performance shares. But because of the deal, and a so-called change of control provision in her contract, Mayer may be able to pocket at least some of those shares in 2016 whether she hits the performance goals or not. What's more, Mayer may also get a new round of stock grants, again not contingent on whether she hits performance goals, for next year, since the deal isn't expected to close until the first quarter of 2017.

-- What's more, the $55 million figure only includes the new grants. It doesn't include the 1.3 million shares she has already been granted, nor the shares of Yahoo she has acquired during her four-year tenure at the company, which all of a sudden become much easier for her to sell if she leaves Yahoo. Sell those and Mayer would pocket another $53 million.

-- But that's not all. On top of that, Mayer is entitled to receive her base salary, which in 2015 was $1 million, for two years after she leaves the company. In addition, Yahoo has agreed to continue to pay the premiums on Mayer's health insurance for a period after she leaves the company, an additional $26,324 per year, because it's hard, and can be expensive, to get health insurance when you leave your job without going directly to another one. We all know what that's like.

-- But wait, there's more. Yahoo is also paying to help Mayer land a new job. During her period of transition, Mayer will presumably need office space, and someone needs to pay for it. The company will put up $15,000 for 24 months of outplacement services for Mayer.

-- What's more, Mayer's huge payout nearly didn't happen. The reason the Verizon deal is so lucrative for Mayer is because of a so-called change of control provision. Yahoo, like other companies, has long had the provision in Mayer and other executive's pay agreement. According to the clause, Mayer can immediately cash in all of her options and unvested stock if Yahoo gets acquired by another company, and Mayer leaves Yahoo within the next year. But the clause technically didn't provide for a sale of Yahoo's main business unit, its internet operations, to another company, which is the deal Yahoo struck with Verizon. But in April, Yahoo's board voted to alter its change-in-control provision to include the sale of a major business unit as well; and with that, Mayer's $123 million payday was created.
Without that vote, Mayer would have walked away with "only" around $14 million.
July 07, 2012
Yesterday, the ambitious executive shocked the tech world by leaving Google to become Yahoo’s new CEO, The one thing she lacked is the sole reason Mayer 's now at Yahoo: Power (big money follows) a role she officially takes starting today.

As we published news of Mayer’s move, we were bombarded with criticisms of her decision. The Internet in general lambasted the executive’s choice, claiming that Yahoo was an inferior company and Mayer was making a fool’s bargain to choose Yahoo over Google.

But nothing could be farther from the truth. In fact, as promising as Mayer’s career was just one year ago, we say she’d have made a fool’s bargain to stay at Google any longer than she did.

(unquote)

(If someone's gain at anyone's loss: who is the fool if there is a fool's bargain?)

Photo courtesy Fortune / SEC Filings / Brian Foley & Co, SNBC / S&P Global Mail, and imgarcade.com

Today I learned a lot from your website. thank you.Dial at our toll-free 0800-098-8858 for any problem for wireless router set-up, router configuration, router Wi-Fi problems, router locked.

Contact Us

Contact Us

RSS feed

Subscribe to WcP Blog RSS feed

Twitter

WcP Blog on Twitter

Facebook

WcP Blog on Facebook

Paper.li

WcP Blog on Paper.li

Pinterest

WcP Blog on Pinterest


Browse other gifts from Zazzle.

Custom Search



Apple iBookstore









Inspirational Quote Posters

Amazon Kindle Books

Random image

2015 gratitude to Mother Nature ~ cradle of us, all Life, Wisdom, Light, harmony and happiness

Poll

Search the Web

Custom Search

Archive Calendar

October 2017
SunMonTueWedThuFriSat
1234567
891011121314
15161718192021
22232425262728
293031

Featured Videos

Latest Quote

"Everything is the product of one universal creative effort. There is nothing dead in Nature."
~ Lucius Annaeus Seneca

"Choose only one master - Nature."
~ Rembrandt Harmenszoon van Rijn

"True wisdom consists in not departing from nature and in molding our conduct according to her laws and model."
~ Lucius Annaeus Seneca

Recent comments

Reader Reviews

  • "Your website seems to have precious gemstones on the subject of penning." - Bryce (March 29, 2017)
  • "I am an anthropology student and this site has helped me a lot to know more about the various cultures across the world. This is the reason I visit the site so often. Keep on sharing more and more posts like this. Thank you." - Anonymous (April 3, 2016)
  • "Your site is valuable. Appreciative for sharing! Awe inspiring Blog!" - Anonymous (March 16, 2016)
  • "This blog is the book which has feelings for around their lives. Will you produce intense addons." - Anonymous (January 26, 2016)
  • "Interesting quote. I have gone through different posts in this website. I could see different themed quotes and interesting posts here. I am much impressed with this website. Keep up the good work and keep sharing interesting stuff." - Howard (January 25, 2016)
  • "I was so impressed by it I felt I would reach out to you to say thank you. Great work...that's one great blog you've got there!" - Kayla (January 8, 2016)
  • "This is incredible. Finally something new. I was reading comics the whole time. This is the real fact, which I do not think anyone else has such a well written and updated blog like yours." - Zach (January 7, 2016)
  • "The Superbly defined stuff of reading, you constructed a masterpiece with your magical mind. Your writing skills are simply awesome. Great work!" - Katie (December 28, 2015)
  • "This really shows that you can still find folks that care about the things they post online. I really liked browsing the comments." - Myles (December 23, 2015)
  • "Yes i agree with the above poem that window is the world so far i have come across. Every thing comes from it. You have written in a very poetic way. Looking forward for more poems from this." - Anonymous (December 11, 2015)
  • "Every last tip of your post is incredible. You're really great to share. Keep blogging..." - Anonymous (December 8, 2015)
  • "I always take pleasure in your articles. You have a gift for discussing such stirring topics in ingenious yet amusing ways. Your posts help us realize that our troubles are typical, and we can solve them in ready to lend a hand ways..." - Angela (October 05, 2015)
  • "We all appreciate the power of words you always provide!" - Anonymous (October 05, 2015)
  • "So poetic..." - Anonymous (September 15, 2015)
  • "The method for composing is phenomenal furthermore the substance is first class. A debt of gratitude is in order for that knowledge you give the perusers!" - Anonymous (July 23, 2015)
  • "Your configuration, man...too astonishing! I cant hold up to peruse what you've got next.Thanks for your superb posting!" - Anonymous (July 16, 2015)
  • "I found myself starring at these photos. I cannot believe that I haven't seen them before, taking into account that I am mesmerized by sea and ocean as one can be by forces of nature. Thank you so much for putting them out here, because even though they were posted by such a giant as National Geographic, I still have missed them. Well, “dazed” is the exact word that describes the feeling that I felt when I first set my eyes in these photos." - Anonymous (July 14, 2015)
  • "I will check your different articles without further ado. Continuously so fascinating to visit your site. Thank you for sharing, this will help me such a great amount in my learning." - Anonymous (July 10, 2015)
  • "Extraordinary stuff, just basically astonishing! Keep it up in future. I am truly inspired by this site!" - Anonymous (July 3, 2015)
  • "I was reading your post since 2012 and you are writing so much outstanding ideas I must say you are a talented person." - William (June 29, 2015)
  • "I have never seen such amazing thoughts displayed in composing. Your author has an extremely one of a kind method for exhibiting data so as to catch the peruser's consideration." - Anonymous (June 27, 2015)
  • "Mind boggling posting! I really like the way you are sharing the exceptional tackle this subject." - Anonymous (June 25, 2015)
  • "I unquestionably appreciated all of it and I have you bookmarked your site to look at the new stuff you post in the future." - Anonymous (June 13, 2015)
  • "I was very thrilled to find this website. This is really interesting and I have recommended this site for my friends also. I had a fantastic read from this blog." - Anonymous (June 2, 2015)
  • ""The exposition seeks to discover a haven inside character and communicate gratitude for life during its peaceful and thoughtful vibe." - Micheal (May 19, 2015)
  • "Fantastic Blog! I might want to thank for the efforts you have made in writing this post." - James (May 15, 2015)
  • "Amazing! Great post! Wonderful pictures and well written article!" - Anonymous (March 10, 2015)
  • "Certainly worthwhile content! This is an excellent reference to spent time and gets authentic observation by reading." - Anonymous (February 12, 2015)
  • "Certainly exceptional blog! It is so wonderful content and acceptable with a clear concept. Thanks much!" - Lisa (January 13, 2015)
  • "Photography is my passion and like to learn something new about it. From your blog i have learned many things and i loved to read it thanks for sharing such a useful post" - Anonymous (January 1, 2015)
  • "It's an extraordinary joy perusing your post. It's loaded with data I am searching for and I want to post a remark that the substance of your post is wonderful. Thanks! :)" - Lilia (July 31, 2014)
  • "I do not even understand how I finished up right here, but I thought this to be great. I do not recognise who you are however certainly you
    are going to a famous blogger for those who are not already. Cheers!" - Gerald (July 24, 2014)
  • "Your blog is very informative. Also the images in it are beautiful!" - Anonymous (January 8, 2014)
  • "It is tempting to comment because of the amazing content on this blog. I wish I had a blog like this." - Anonymous (December 27, 2013)
  • "Thanks for trying to make the world a better place." - Anonymous (July 16, 2013)
  • "I have added to my favorites. I just found this blog and have high hopes for it to continue. I believe this really is excellent information. Most of men and women will concur with you and I ought to thank you about it. Thanks for sharing." - Anonymous (May 16, 2013)
  • "This is awesome! Your photos are perfectly taken! It captured the decisive moment. I am a fan already." - Sarah (Apr. 15, 2013)
  • "Can I just say what a relief to obtain a person who truly knows what they're talking about on the web. You certainly know easy methods to bring an issue to light and make it critical. Extra individuals must read this and comprehend this side of the story. I can't believe you're not even more well-liked considering that you absolutely have the gift." - Anonymous (Jan. 23, 2013)
  • "I wish to show my thanks to the creator of this blog. Keep contributing a good concepts and strategies. Many people will surely improve their skills by reading blogs like this." - Anonymous (Dec. 25, 2012)
  • "I really like your style but mostly your initiative. The world needs more writers like yourself." - Steve (Jan. 18, 2012)
  • "It must be very rewarding to have a long term project like this and too see the progress being made! Thanks for sharing it." - Mika (Jan. 18, 2012)
  • "This was a very eye opening video. It's made an impact on me. We're so unaware of the things that we do every day can destroy our ecosystem. The statistics are mind blogging especially the fact that 90% of big fish are gone. We need to stop this somehow. I'm going to spread this page to my mutual friends. Thanks for this." - Joseph (Jan. 15, 2012)
  • "I enjoy this blog a lot." - Liz (California, USA; Oct. 17, 2011)
  • "Keep up the good work you're doing." - Casper (Melbourne, Australia)
  • "Thanks for sharing some great content through your blog. It has been a sincere pleasure to read." - Anonymous
  • "Always fresh and fascinating." - Anonymous
  • "Cool bio[mission statement]." - Darin (California, USA)
  • "You have some beautiful images. Love your site!" - Susan (Washington DC, USA)
  • "I love your Blog." - Kate (Ireland)
  • "A great site highlighting many important issues." - Bob (New Zealand; Feb. 20, 2010)
  • "Love the images on this blog..there are some interesting articles about health I noticed...we tend to run a 50/50 risk of a heart attack...I noticed when in the USA recently everyone seemed huge..they ate massive meals...I reckon that is one cause of heart failure...just my opinion..but yeah these articles can be worrying to some folk so just heed the advice...I know I will." - Mick (The Sunshine Coast, Australia; Aug 29, 2009)
  • "Excellent blog." - Bill (Vancouver Island, Canada)
  • "Fantastic blog and educational articles, much enjoy visiting...Thank you!" - Lotus1150 (Alberta, Canada; Aug 28, 2009)
  • "Great site and awesome photos." - David (Washington DC, USA)
  • "I loved your website. Even finding some news about Turkey made me surprised." - Anonymous (Turkey)
  • "Gorgeous site ... the kind of place you could lose yourself for hours (suppose that was intentional?). Also, cartoons, commentary on the events of the times, etc. Great stuff." - Daniel (Nevada, USA; Jan. 03, 2009)
  • "...may your blog, ideas and efforts help many more people." - Anonymous (New Mexico, USA)
  • "Very cool site..." - Anonymous
  • "Amazing site, worth the visit every time... enjoy." - Sam (Saudi Arabia)
  • "Easy to read and well-designed." - Colin (Arizona, USA; Apr. 22, 2009)
  • "Unique mix of news, photos and poetry." - Frasier (Virginia, USA)
  • "Worldculturepictorial.com/blog is an extremely interesting collection of news articles. It calls itself "A Window On the World". The site contains a wide variety of topics, all very informative and pertinent to life in today's world." - Cynthia (Massachusetts, USA; Aug. 07 2008)
  • "Wow. Cool." - Christopher (Melbourne, Australia; Dec. 10 2008)
  • "An interesting way to check out the wonders of our world." - Anthony (Ohio, USA)
  • "Nice site, especially the rss icon." - Daniel (California, USA; Sep 10, 2008)
  • "Good blog - Everything from news to photography. Very informative." - "explicitmemory" (Texas, USA)
  • "Very informative site by prose and picture..." - Jeff (Michigan, USA)