After much consideration and sweetening up the deal Yahoo finally has a new CEO. For the past 5 years Yahoo has hired several CEO’s without any positive outcome. The last CEO was asked to step down for pampering his resume as mentioned in, “Yahoo CEO Mayer's pay package worth more than $59M” article. Mrs. Marissa Mayer, 37 years old with a broad experience with Google is Yahoo’s most recent acquisition, will be well compensated and also facing the board’s pressure to come up ahead with a positive outcome.
Particularly, the article “Marissa Mayer: Meet Yahoo's New CEO” discusses her qualifications and background. Ms. Mayer’s is the formal Vice President of Google. She started in 1999 as the 20th employee and was the first female engineer the company hired. Ms. Mayer’s is not the first female CEO for Yahoo. Moreover, she is recognized for her knowledge in technology.
Generally speaking, Mrs. Mayer will be well compensated. As an illustration, in the article “Yahoo's Marissa Mayer to earn $1M salary, plus giant bonus potential”; it is explains every detail of Ms. Mayer’s salary which is about $100 million. Did she accept this job for the money? That has not come out yet but she is worth an estimated $300 million. Mrs. Mayer is receiving the same amount of salary and bonus as the last CEO but Yahoo has thrown in a lot more incentives which captured her attention.
Furthermore, Mrs. Mayer will have to demonstrate her abilities in working under pressure as well as producing a positive outcome. Rather than focusing on her compensation, the question is, will she be able to help Yahoo generate more revenue? Mrs. Mayer is expected to increase revenues and to bring new ideas to the table. In addition, her back ground seems to say that she will be capable of achieving their expectations but will the board work with her?
It seems as if the board wants fast results and usually life and/or business do not work in that manner. Five CEO’s within the last five years have a lot to say. Mrs. Mayer signed a five year contract. Hopefully, the board goes through with the contract in order to see the results that they are expecting. Is the board working with the CEO or are they just expecting fast results? Only time will tell.
To summarize, Mrs. Mayer is a well experienced executive, who will be well compensated and expected to produce positive outcome under the Yahoo’s board pressure.
References:
AP Associated Press, “Yahoo CEO Mayer's pay package worth more than $59M”, 19 July 2012
Sloan, Paul, “Yahoo’s Marissa Mayer to earn $1M salary, plus giant bonus potential” 19 July 2012
http://www.cbsnews.com/8301-205_162-57476212/yahoos-marissa-mayer-to-earn-$1m-salary-plus-giant-bonus-potential/
Stern, Joanna, “Marissa Mayer: Meet Yahoo’s New CEO” 17 July 2012
http://abcnews.go.com/Technology/marissa-mayer-yahoos-ceo/story?id=16794252
I think that it is cool to see another woman breaking through "the glass ceiling." I like the incentive based pay package that they are using. It is like telling her that how much she makes is up to her. Although in reality there are a lot of factors outside of her control that could make or break her income.
ReplyDeleteI was discussing this just yesterday. I think Yahoo is walking zombie from the .com era. The sold their stake in Ali Baba, and turned down Microsoft's takeover bid. I keep waiting for them to bite the dust. Throwing $100 million at a new CEO, female or not, is not going to turn the tide. Everyone's a winner, except the shareholders.
ReplyDeleteI remember hearing about the last CEO the padded his resume, I hadnt heard they had hired a new CEO. Seems she better get in there and make it happen or it's off to the cutting block. Hopefully this will not make 6 in 6 years.
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