Is Yahoo Chairman and CEO Terry Semel screaming Yahoo?
Yahoo Inc. (YHOO) announced yesterday that its board of directors has reduced Semel's annual salary from $600,000 to $1. Yes, rub your eyes and do a double take - it says $1, one, uno, one hundred pennies. Semel trades his cash for an increase in his overall future compensation through grants of stock options.
This isn’t some publicity stunt (well
maybe). Yahoo’s long-term executive retention plan has Semel sticking to this plan of $1 per year for the next three years through 2008. Before the tears start, let me add that Semel received an option to purchase 6 million shares of Yahoo. So an increase in Yahoo's share price of a few dollars and the Yahoo executive will be back flying first class.
In 2004, Google Inc. (GOOG), Yahoo's biggest rival instituted this same deal in 2004 for its co-founders Larry Page and Sergey Brin and CEO Eric Schmidt (all billionaires).
Post Enron, maybe we will see more Boards actually provide leadership, hold executives accountable and align their compensation with that of other stakeholders.
Read more at the Washington Post and the Truth on the Market.
.jpg)
» Salary of Yahoo CEO down to $1 from The Search Engine Weblog
Yahoo Chief Executive Terry Semel, will receive an annual salary of just $1 through 2008. Yes you heard it right, only $1 dollar. However, for the next three years, Semel also will be eligible to receive an annual bonus of... [Read More]
Tracked on: June 5, 2006 8:50 PM | Permalink to Trackback