5 ms·

Did anyone else pause at the $80k and think that's not very much, before continuing to read "per month"?

by ndefinite 14y ago

royalghost 14y ago
Exactly! I did.
eta_carinae 14y ago
One million dollars a year is still very, very low for a CEO of a major public company.
- uvdiv 14y ago
  That's only the salary. "The estimated value of executive pay packages can also be calculated in dramatically different ways. After factoring in future grants of restricted stock and stock options due Mayer under her employment agreement, Yahoo said her annual compensation will be worth about $20 million annually [sic], or about $100 million during the next five years that the company hopes to retain her as CEO." http://www.washingtonpost.com/business/technology/new-yahoo-ceo-marissa-mayers-compensation-package-worth-more-than-59m-over-several-years/2012/07/19/gJQAOD4ywW_story.html http://www.washingtonpost.com/business/technology/new-yahoo-...
  - btipling 14y ago
    $100 million dollars? Really? How could that be cost effective?
    - mkramlich 14y ago
      Agree the amount seems obscene. But technically as long as they believe, at the end of that period, that Yahoo has done say $150M better, for example, then on the net Yahoo was better off. I doubt that Ms. Meyer (and indeed, probably most CEO's) are really worth what they get paid, but I do think it's possible that here coming on board may have a big enough impact, both directly and indirectly, to move the needle for them by $100M+ net relative to alternate courses of action. And that's all that's needed for the math to justify it. One question will be, of course, whether if by her coming over it also leads to other Google caliber folks switching ships as well. I've heard people say she's a great choice, and people say bad, but I can't add anything either way. It's likely that she was one factor in Google's success. It's also likely that some people give her too much credit and she got a little lucky. Both can be true.
      - megablast 14y ago
        Because that has worked out so well for them so far, they are great at picking CEO's.
      - BHSPitMonkey 14y ago
        Do you think it's even possible to say that those gains, if they occur, are a direct result of the CEO's actions? Is it even /possible/ for Marissa to provide /that much/ value to the company? I feel as though the collective actions of everyone other than the CEO have a much greater impact on the company's success in a given year.
        gvb 14y ago
        In your car, when you push the gas pedal and turn the wheel, you are not moving the car. You are directing the car how and where to move. Lately, Yahoo has been ramming into the back end of a slow moving bus. If she gets Yahoo back onto the expressway, she will be responsible for the success, although all the employees working together will be implementing the success.
        pullo 14y ago
        Your analogy makes all other employees look like mind less cogs,who can have no idea's of their own.No CEO can succeed without a good team. Which begs the question , if yahoo makes 150M more, does she deserve 2/3rd's of that new money? Is Marissa the only person who has a winning perspective or a sense of direction in a firm of more than 10000 people? What we see here is the trickle down effect and people closer to the money paying themselves first. It is also true that a bad ceo ( thompson, bartz) can do more damage to a large company like yahoo than the benefits a good ceo can bring. The board has swung for the fences cause it has shot itself in the foot many times. A lot of this money , is for Marissa to NOT screw up yahoo like her predecessors. Even if she just keeps the engine chugging along at an average pace, the board will be relieved. edit: Grammar
        eli_gottlieb 14y ago
        Somehow I think that if the ordinary employees weren't told they'd be fired for doing what they think is right instead of what their bosses order them to do, they could run things just fine themselves. Only the rulers think you need rulers.
    - anonimo 14y ago
      Yahoo's yearly revenue is around $4 billion. Net income around $1 billion. It's not unreasonable to expect she could raise revenue and/or improve the profit margin by a few percent points.
    - JacobIrwin 14y ago
      Anything above a 5% jump in Yahoo!'s stock price during Mayer's tenure would equate to $1billion increase in Yahoo!'s market cap. One way to answer your question, would be to say: It seems the shareholders of Yahoo! are willing to pay a fair commission to someone in exchange for an increase in the value of their stock (with optimism that Mayer's leadership will result directly in this happening).
      - giulianob 14y ago
        It's kind of b/s though to assume that just because a company does better it's all due to the CEO.
      - eli_gottlieb 14y ago
        Anything above a 5% jump in Yahoo!'s stock price during Mayer's tenure would equate to $1billion increase in Yahoo!'s market cap. But that's not actually value generated. It's value captured from the grand casino of the stock markets. Yahoo! itself is not holding 1 billion more dollars at the end; Yahoo! shareholders are collectively, all tens of thousands of them, holding 1 billion in potential gains should they all sell their stock in some way that won't crash the stock price from the sudden sell-off.
  - eta_carinae 14y ago
    > That's only the salary. Like I said, it's still very low for a CEO salary.
- jonburs 14y ago
  $1m / year is actually a very common base salary, for tax reasons -- anything above that amount the company can't deduct as a compensation expense. The majority of CEO compensation is via bonuses and long-term equity incentives (grant, options, etc.).
  - samstave 14y ago
    Exactly, there is up to 4MM, +12MM + 30MM in comps in that offer. as well as up to 25K legal, 50K security, stocks and loans and other grants in there too. Thats a TON
sreyaNotfilc 14y ago
Yeah, I read it like this.. Letter: "Your starting annual base salary will be $83,333.33".. Me: O_o That's it? Letter: " per month".. Me: O_O Ohhh!! And it only gets better from there with the incentives and awards packages. Yes, there's a lot of work to be done. Being the CEO isn't just putting your feet up and yacking out orders. You gotta work your butt off. Not only for you, but the people who are counting on you to move the company in great direction. I hope Marissa does well. Yahoo! hasn't been relevant for years now and I hate to see them just go away. We need more competition out there and I'm sure there are a lot of brilliant minds that can pull things together. As for me, I need to work even harder/better if I ever wanna see that kinda scratch.

Did anyone else pause at the $80k and think that's not very much, before continuing to read "per month"?

royalghost 14y ago

Exactly! I did.

eta_carinae 14y ago

One million dollars a year is still very, very low for a CEO of a major public company.

uvdiv 14y ago
That's only the salary. "The estimated value of executive pay packages can also be calculated in dramatically different ways. After factoring in future grants of restricted stock and stock options due Mayer under her employment agreement, Yahoo said her annual compensation will be worth about $20 million annually [sic], or about $100 million during the next five years that the company hopes to retain her as CEO." http://www.washingtonpost.com/business/technology/new-yahoo-ceo-marissa-mayers-compensation-package-worth-more-than-59m-over-several-years/2012/07/19/gJQAOD4ywW_story.html http://www.washingtonpost.com/business/technology/new-yahoo-...
- btipling 14y ago
  $100 million dollars? Really? How could that be cost effective?
  - mkramlich 14y ago
    Agree the amount seems obscene. But technically as long as they believe, at the end of that period, that Yahoo has done say $150M better, for example, then on the net Yahoo was better off. I doubt that Ms. Meyer (and indeed, probably most CEO's) are really worth what they get paid, but I do think it's possible that here coming on board may have a big enough impact, both directly and indirectly, to move the needle for them by $100M+ net relative to alternate courses of action. And that's all that's needed for the math to justify it. One question will be, of course, whether if by her coming over it also leads to other Google caliber folks switching ships as well. I've heard people say she's a great choice, and people say bad, but I can't add anything either way. It's likely that she was one factor in Google's success. It's also likely that some people give her too much credit and she got a little lucky. Both can be true.
    - megablast 14y ago
      Because that has worked out so well for them so far, they are great at picking CEO's.
    - BHSPitMonkey 14y ago
      Do you think it's even possible to say that those gains, if they occur, are a direct result of the CEO's actions? Is it even /possible/ for Marissa to provide /that much/ value to the company? I feel as though the collective actions of everyone other than the CEO have a much greater impact on the company's success in a given year.
      - gvb 14y ago
        In your car, when you push the gas pedal and turn the wheel, you are not moving the car. You are directing the car how and where to move. Lately, Yahoo has been ramming into the back end of a slow moving bus. If she gets Yahoo back onto the expressway, she will be responsible for the success, although all the employees working together will be implementing the success.
        pullo 14y ago
        Your analogy makes all other employees look like mind less cogs,who can have no idea's of their own.No CEO can succeed without a good team. Which begs the question , if yahoo makes 150M more, does she deserve 2/3rd's of that new money? Is Marissa the only person who has a winning perspective or a sense of direction in a firm of more than 10000 people? What we see here is the trickle down effect and people closer to the money paying themselves first. It is also true that a bad ceo ( thompson, bartz) can do more damage to a large company like yahoo than the benefits a good ceo can bring. The board has swung for the fences cause it has shot itself in the foot many times. A lot of this money , is for Marissa to NOT screw up yahoo like her predecessors. Even if she just keeps the engine chugging along at an average pace, the board will be relieved. edit: Grammar
        eli_gottlieb 14y ago
        Somehow I think that if the ordinary employees weren't told they'd be fired for doing what they think is right instead of what their bosses order them to do, they could run things just fine themselves. Only the rulers think you need rulers.
  - anonimo 14y ago
    Yahoo's yearly revenue is around $4 billion. Net income around $1 billion. It's not unreasonable to expect she could raise revenue and/or improve the profit margin by a few percent points.
  - JacobIrwin 14y ago
    Anything above a 5% jump in Yahoo!'s stock price during Mayer's tenure would equate to $1billion increase in Yahoo!'s market cap. One way to answer your question, would be to say: It seems the shareholders of Yahoo! are willing to pay a fair commission to someone in exchange for an increase in the value of their stock (with optimism that Mayer's leadership will result directly in this happening).
    - giulianob 14y ago
      It's kind of b/s though to assume that just because a company does better it's all due to the CEO.
    - eli_gottlieb 14y ago
      Anything above a 5% jump in Yahoo!'s stock price during Mayer's tenure would equate to $1billion increase in Yahoo!'s market cap. But that's not actually value generated. It's value captured from the grand casino of the stock markets. Yahoo! itself is not holding 1 billion more dollars at the end; Yahoo! shareholders are collectively, all tens of thousands of them, holding 1 billion in potential gains should they all sell their stock in some way that won't crash the stock price from the sudden sell-off.
- eta_carinae 14y ago
  > That's only the salary. Like I said, it's still very low for a CEO salary.
jonburs 14y ago
$1m / year is actually a very common base salary, for tax reasons -- anything above that amount the company can't deduct as a compensation expense. The majority of CEO compensation is via bonuses and long-term equity incentives (grant, options, etc.).
- samstave 14y ago
  Exactly, there is up to 4MM, +12MM + 30MM in comps in that offer. as well as up to 25K legal, 50K security, stocks and loans and other grants in there too. Thats a TON

sreyaNotfilc 14y ago

Yeah, I read it like this.. Letter: "Your starting annual base salary will be $83,333.33".. Me: O_o That's it? Letter: " per month".. Me: O_O Ohhh!! And it only gets better from there with the incentives and awards packages. Yes, there's a lot of work to be done. Being the CEO isn't just putting your feet up and yacking out orders. You gotta work your butt off. Not only for you, but the people who are counting on you to move the company in great direction. I hope Marissa does well. Yahoo! hasn't been relevant for years now and I hate to see them just go away. We need more competition out there and I'm sure there are a lot of brilliant minds that can pull things together. As for me, I need to work even harder/better if I ever wanna see that kinda scratch.