CEO Marissa Mayer is set to earn $186 million after the Internet company's sale to Verizon Communications (VZ) is complete, the Wall Street Journal reports.
According to company filings, Mayer holds $77 million in shares outright that she would have access to whether a sale occurred or not.
Getting more pay than Armstrong for leaving rather than staying is one of the examples that show how well Marissa Mayer did since she became Yahoo CEO five years ago. Her Yahoo stock, stock options and restricted stock units were worth a total of $186 million, on the basis of yesterday's stock price of $48.15, according to data in the documents sent to shareholders about the Verizon deal.More news: N'Golo Kante: Why Chelsea midfielder won PFA Player of the Year
Yahoo has suffered missteps, including fallout from hackers who past year compromised a billion of its user accounts. The breach also caused Verizon to shave $350 million off the previous sale price of $4.8 billion. Of course, the shareholders of Yahoo will have to approve or reject the deal on June 8th.
To her credit, Mayer did find a buyer for Yahoo's core internet operation, which includes Yahoo.com, the company's ad and video businesses, and a suite of mobile apps. At the closing, all outstanding Yahoo stock options will be fully vested and exercisable, the filing noted. A yes vote, which is widely expected, would end Marissa Mayer's largely unsuccessful five-year effort to restore the internet pioneer to greatness.
This increase wasn't because of improvements in the advertising business of Yahoo, which has continued losing from its rival services by Facebook and Alphabet.More news: Mel B is being sued by former nanny for defamation
But Mayer, the company's chief executive, will be well compensated for her failure.
Yahoo's stock price has tripled since Mayer took over, but her tenure has been tumultuous.
"People give Mayer a hard time because she was supposed to be some kind of product genius: 'She didn't create the next Snapchat inside Yahoo so she didn't succeed, '" Espelien said. The stake had made Yahoo an appealing way for US investors to invest in Alibaba before its IPO, helping to drive up Yahoo's share price in the mean time. This means that when the deal will be finalized, Mayer will no longer remain with Yahoo.More news: Klayman: Obama's $400K Wall Street Payday Par for the Course