Even as the future of Yahoo and its CEO, Marissa Mayer, remains uncertain while the company debates whether to sell its core Internet business, one thing is guaranteed: If it does sell, and the new company chooses to fire Mayer without due cause, she could get as much as $158 million in severance based on the calculations for 2014.
This revelation comes as Yahoo's board faces increasing pressure by Starboard Value LP to cease plans to spin off its stake in Alibaba Group Holdings Ltd., and sell its Internet business to the highest bidder, reported Reuters. Yahoo has a 15 percent stake in Alibaba and held a three-week meeting last week to determine what will become of the stake. As the talks progressed, many soon to turned their attention to what would happen if Mayer were fired without cause as a result of the company changing hands - the only way the severance would activate.
"Mayer is one of the country's best-paid CEOs," according to Infotech Lead. "The severance payment is almost four times of the total payment she received in 2014. Last year, Mayer received total payment of $42 million against $24.9 million in 2013."
Based on calculations from 2014, the package would include a cash severance of $3 million, continued health-care benefits valued at $24,331, then $15,000 for outplacement benefits, restricted stock acceleration worth $66.5 million and option acceleration worth $88.3 million - in total, $157.9 million.
This calculation prices her severance package at $160 million more than what Yahoo's core business is worth on the market - $0, reported Fortune. However, its noted that this is somewhat inaccurate because Yahoo's stock price has fallen by 32 percent since they were calculated at the end of 2014. So in reality, the total severance package would go down to about $108 million, while the regular severance would go down to around $25.5 million.
Regardless of the reduction, those numbers are huge, especially for a company that has been struggling in recent years. Numbers that have led some to question how Yahoo's directors could consider firing Mayer without following her out the door.
