Yahoo CEO reaps millions for failure
Marissa Mayer, chief executive officer of Yahoo Inc., is set to reap a hefty $186 million despite her inability to successfully turn the internet giant around in five years as CEO. She will also receive $3 million in cash. Mayer is expected to step aside when Verizon completes its $4.8 billion purchase of Yahoo, a surprisingly low buyout considering Yahoo is worth about $100 billion. Shareholders will be asked to approve the deal on June 8.Mayer’s payout is largely based on the 208 percent increase in Yahoo’s stock price since she left Google for Yahoo in 2012. Long-held investments in Alibaba, China’s leading e-commerce company, and Yahoo Japan increased in value, which resulted in an increase in Yahoo’s stock price.
However, Mayer is really compensated for her failure. Throughout her tenure, she is known for making numerous mistakes that affected the company, such as spending $3 billion on acquisitions, including the $1.1 billion purchase of Tumblr, which largely declined and failed as a micro-blogging site. During Mayer’s tenure, there was a failure to prevent two high-profile hacking incidents that affected more than a billion Yahoo user accounts last year. Mayer has left Yahoo in a worse state than when she joined, but will be walking away with what seems more like a reward regardless of what critics have to say about her tenure.