SAN FRANCISCO – Yahoo CEO Marissa Mayer emerged as the Internet company’s second highest paid executive during her first five-and-half months on the job.
Regulatory documents filed Tuesday revealed that Mayer received a pay package valued at $36.6 million last year. Most of the compensation consisted of stock awards that Mayer got in July when she ended a 13-year stint as a top Google executive to become Yahoo’s CEO.
Most of the components of Mayer’s pay had been previously disclosed.
It wasn’t previously known that Mayer ranked second on Yahoo Inc.’s pay scale last year.
Henrique de Castro, another former Google Inc. executive who became Yahoo’s chief operating officer in November, eclipsed Mayer with a compensation package valued at $39.2 million.
Like Mayer, most of de Castro’s pay is linked to long-term stock incentives that could be worth more or less depending on how Yahoo’s stock performs during the next few years.
Yahoo’s stock has surged by nearly 60 per cent since Mayer became CEO, largely because of the rising value of the company’s holdings in rapidly growing Alibaba Group, a Chinese Internet company. Investors also have been encouraged by improvements that Mayer, 37, has been making to Yahoo’s online services and mobile applications as part of her strategy to attract more traffic and sell more advertising.
The Associated Press calculates an executive’s total compensation by adding salary, bonuses, perks, above-market interest that the company pays on deferred compensation and the estimated value of stock and stock options awarded during the year. The AP formula does not count changes in the present value of pension benefits — something that Yahoo doesn’t pay anyway.
When Yahoo lured Mayer away from her top job at Google, she received a package valued at more than $59 million. A major chunk those payments were granted last year. She is due a one-time payment of $30 million if she remains Yahoo’s CEO for five years.
Mayer’s compensation last year included stock awards valued at $35 million, including $4.3 million that is now vested. The other awards will vest in stages during the next few years. She also received a pro-rated portion of her $1 million salary and a $1.1 million bonus. The company, which is based in Sunnyvale, Calif., also paid nearly $39,500 to provide Mayer with personal security last year.
The stock awards granted to de Castro last year were valued at $38 million. He also received $84,092 in salary and a $1.1 million bonus that included $1 million to make up for benefits that he gave up when he left his old job at Google.
Google’s top-paid executive last year fared even better than Mayer and de Castro. Nikesh Arora, Google’s chief business officer, received a package valued at $46.7 million. Meanwhile, Google CEO Larry Page — Mayer’s former boss — limited his pay last year to a $1 salary.