After being appointed as new CEO of Yahoo, Marissa Mayer is a happy lady. She is not only going to enjoy leading one of the premier media giants in the world today but her bank balance will be in round numbers. Yahoo has announced that Mayer will be earning $1 million annually which works out at $83,333.33 a month. While it seems a mouthwatering salary, it just reflects one side of the spectrum.
Should Mayer be able to lead the company for five years, this package would spike drastically and could make her a fortune of $60 million. It will all depend on whether Mayer meets the set targets or not. During 2012, Mayer could participate in an incentive plan that see her monthly earnings rise by at least 200%. In case Mayer meets all targets set for 2012, she would witness her monthly earnings rise by a maximum of 400%. This could increment her earnings by $2 million to $4million more per annum.
Mayer will also be entitled to stock options worth $12 million subjected to the approval of the compensation committee. Through 2014, there will be $14 million in restricted stock units which includes $4 million in 2012, $7 million in 2013, and $3 million in 2014. This plan is to compensate Mayer for what she gave up at Google. In addition to this, there will be a $30 million retention equity award in restricted stock units (RSUs) and stock options through 2017.
All of this should be a great motivation for Mayer to step foot into her new position. However, given that Yahoo has been struggling and has observed 5 CEOs in five years, Mayer’s role will be continuously challenged.
Just for the note, Mayer’s first pay date will be July 25, 2012.