Yahoo’s New CEO To Be Richly Rewarded

    January 16, 2009

People often ask themselves how much money they’d require in order to perform an unpleasant task.  Think about an actor considering a really stupid role, for example, or that entire show "Fear Factor."  And, well, it seems that $19 million was enough to get Carol Bartz to take charge of Yahoo.

Carol Bartz
 Carol Bartz

Details of the new Yahoo CEO’s compensation package were explained in an SEC filing.  Although the situation isn’t entirely straightforward – there won’t be a lump sum deposited in Bartz’s bank account – she definitely stands to gain a great deal of money.

Let’s start with the guaranteed goodies.  First, there’s the base salary of $1 million.  Then there’s an annual equity grant, which will be equal to $8 million in stock this year.  Lastly, there’s a grant worth $10 million (25 percent cash, 75 percent stock) to make up for whatever Bartz’s previous employer won’t give her now.  Plus four weeks of vacation and some other random stuff.

Not bad, eh?  But we mustn’t forget the "maybes."  Bartz is eligible to receive an annual bonus worth between two and four times her base salary.  Next, tied in a tiered manner to increases in the company’s value, there are stock options for 5 million Yahoo shares.

So try not to feel too bad for Yahoo’s new CEO, even if she is inheriting a messy situation.