Yahoo! Exec gets $58 million paycheck for 15 months of work
CNN Money –Former chief operating officer Henrique de Castro left Yahoo with a severance package worth $58 million, according to a regulatory document filed Wednesday with the SEC.
The golden parachute is among the most generous in history, and especially notable given that de Castro worked at Yahoo for only 15 months.
De Castro was shown the door in January by CEO Marissa Mayer, apparently due to disappointing performance in improving Yahoo’s advertising revenue.
Mayer and de Castro — two former Google executives — were under tremendous pressure to revive Yahoo’s battered core business.
Yahoo (YHOO, Fortune 500) said in its SEC filing that de Castro was not paid a bonus for 2013 because the compensation board “believed that he did not meet the performance standards.”
But de Castro was compensated in other ways.
The executive earned a base salary of $600,000 in 2013, while stock grants and options raised his total compensation to around $11 million.
In 2012, de Castro received a whopping $39 million, although he will forfeit much of that because some stock had not vested at the time of his departure.
Much of the $58 million severance package’s value is attributable to Yahoo’s rising stock price while de Castro was with the company.
The SEC filing indicates that the package was worth only $17 million in October 2012. By early 2013, the parachute had increased to its final size of $58 million.
And you wonder why the common people of San Francisco and the Bay Area turn over smart cars, block Google buses and are irate at the rising rents prices. This is precisely why, because although his annual salary was not that much, the stock game…much of which is related to overall company performance…is something that can fluctuate how much of these guys’ total take. Sure Mark Zuckerberg and Steve Jobs types only take $1 a year in salary, they get so much stock it’s mind blowing.
What makes it worse is that they gave this guy soooooo much stock that even in 15 months of being shitty at your job, that he still netted a ton. Corporate should go to the NFL model with guaranteed contracts with incentives, but that will never happen because you’re dealing with old, stuffy whitey and old stuffy whitey will never change their ways. So congrats, de Castro, you don’t have to work again because you successfully rose the corporate ladder to a point where you could drop an absolute dump on the rug and get a nice check for it.