Marissa Mayer, Yahoo’s Chief Executive Officer (CEO), pocketed nearly US$6 million for her maiden year on the job, reported CNN.
She earned US$1.1 million in cash bonuses and US$4.3 million in shares, in addition to her salary of nearly US$500,000, revealed recent filings to the US Securities and Exchange Commission.
Considering that Mayer was hired as Yahoo’s CEO last July, her pay package translates to around US$1 million per month.
If she hangs on to her role for the next four years, she will be able to earn even more. This is because Mayer’s pay package has a minimum value of US$71 million until 2017. It may even surpass US$120 million if she gets another batch of stock grants or if Yahoo’s stock maintains its climb, considering that most of her compensation package is paid in company shares.
Yahoo’s share prices climbed by over 50 per cent in the past nine months since Mayer took over.
Moreover, Yahoo generously forked out millions of US dollars to encourage Mayer to quit Google and go to Yahoo. The firm also rewarded its past Chief Executives generously as well. For example, Scott Thompson was given a first-year pay package of up to US$26 million before he resigned due to false information on his curriculum vitae.
Mayer’s compensation package compares favourably to other CEOs. For example, Google Chief Larry Page earned only one dollar in 2012, Microsoft’s Steve Ballmer pocketed only $1.3 million, and Apple’s Tim Cook pocketed US$4.2 million.