19 million reasons why new Yahoo boss took the job

 

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By Reuters

Posted on 16 Jan 2009 at 07:59

Yahoo's new chief executive, Carol Bartz, will receive a compensation package of about $19 million in 2009, in addition to a bonus and stock options, according to a regulatory filing.

Bartz's appointment, confirmed earlier this week, is seen paving the way for the internet company to make decisions on major issues, including a sale or search deal with Microsoft.

Yahoo will pay Bartz an annual base salary of $1 million, as well as a $10 million equity-and-cash payment to make up for benefits that she will forfeit from her previous employer Autodesk, according to Yahoo's filing with the US Securities and Exchange Commission.

She will also receive an annual equity grant, which in 2009 will be around $8 million.

Bartz will also receive stock options for five million Yahoo shares, with a strike price to be determined on 30 January.

She is not allowed to exercise the options until the end of a four-year agreement, and they will only begin to vest when the share price is increased by 50% for a minimum of 20 consecutive trading days, the company claims.

Furthermore, the new CEO is eligible for a yearly bonus of between $2 million to $4 million. The annual bonus will be determined by the board's compensation committee based on the company and Bartz's performance.

Yesterday, Bartz told Yahoo employees that her "gut instinct" was to hold on to the company's search business, a step that would rule out a fresh deal with Microsoft. Bartz said she would weigh up the pro and cons of a deal with the software giant, although it's reported that she's already held discussions with Microsoft chief executive Steve Ballmer, despite only being in the job for three days.