Despite the fact that Yahoo has sold its key business, it has decided to pay all its top executives with a handsome amount. On Monday, Yahoo announced its upcoming plans for the future and said that Yahoo is about to sell its advertising business and technology to Verizon. Once this deal has been made official, the company will replace its existing Chief Executive Officer, Marissa Mayer. The remainder of the company will comprise of the Alibaba stocks that are owned by Yahoo, the stakes of the Yahoo operating in Japan, and several other minor investments.
When compared to the tasks at hand available to Marissa Mayer, the tasks that are going to be executed now will be much simpler. As Marissa Mayer is leaving Yahoo, the company is going to offer her a severance package of 23 million dollars. In addition to this, she has been awarded with options of unexercised stocks that amount to 69 million dollars. And she is also the owner of the stocks of Yahoo, which are worth 97 million dollars. She can sell these stocks if she wants after she leaves the company.
Marissa Mayer has even voluntarily surrendered 20 million dollars as a compensation for the cyber-attacks that had recently taken place in Yahoo. Summing all this up, Marissa Mayer will still be the owner of a very handsome capital, which can be approximated to about 189 million dollars.
Yahoo decided to replace Marissa Mayer with the former Chief Executive of the IAC, Thomas McInerney. He received his offer letter on Monday and will be beginning his term as the new Chief Executive officer of Yahoo with a base salary of 2 million dollars. This is twice the amount that was being paid to the former CEO, Marissa Mayer. According to the disclosures revealed by Yahoo, the company plans to pay Thomas McLearney a sum of 4 million dollars in his 1st year and the company assumes that he is going to achieve all his targets.
This decision of paying Thomas Mclnerney so much more than Marissa Mayer can be questionable on the basis on discrimination of gender. The amount, which Thomas Mclnearney will be receiving, is for absolutely no work as compared to the burdensome, tedious, and challenging tasks that had to be carried out by Marissa Mayer.
Yahoo, which will be headed by Thomas Mclnearney, is not like the vast business Yahoo used to be prior to its sale to Verizon. It has transformed into an investment company, which will carry out similar operations and functions like any other mutual fund.