Yahoo’s Marissa Mayer gets $55M to leave

Yahoo’s Marissa Mayer gets $55M to leave

Yahoo’s Marissa Mayer gets $55M to leave

Written by Staff Writer

03 May, 2016 | 8:59 am

Yahoo just disclosed the size of its executive pay packages and Marissa Mayer stands to make millions coming or going.

On Friday, the company disclosed the packages that will be available to key executives if they are ousted in the event of a sale. Mayer will be paid $54.8 million in cash and stock if she’s removed from her job within a year of a sale.

Yahoo has no deadline for reaching a decision on a sale, but analysts expect a deal to be struck within the next two months at a price ranging anywhere from $4 billion to $10 billion.

In February, the internet company announced it was offering its core business for sale, after several years of falling advertising sales.

The internet media company’s fortunes have changed drastically in the past decade, with sales falling from $7.2bn in 2008 to $4.6bn last year. As a result shareholders continue to suffer and the value of stock lost roughly a third of its value last year. Shares closed Friday at $36.60. And there’s a reason the stock is headed in the wrong direction. Yahoo went from making $7.5 billion in 2014 to losing $4.4 billion in 2015.

Shares of Yahoo are up 134 percent since Mayer took the helm in July 17, 2012. But that’s entirely due to the meteoric rise in the company’s stake in Chinese e-commerce company, Alibaba. Yahoo’s 15 percent stake in Alibaba is worth $30.2 billion, which almost worth as much as Yahoo itself with a market value of $34.7 billion. Yahoo also has a 36 percent stake in Yahoo Japan worth $967 million and $6 billion in cash, So that means the market sees business of Yahoo itself as worthless.

 

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