Yahoo CEO Marissa Mayer to make $186 million on sale to Verizon

Marissa Mayer

Justin Sullivan Getty Images

So, it has been reported that Yahoo's CEO will be paid $184 million when the sale of Yahoo to Verizon will be completed.

The money includes the value of shares already owned, outstanding share options, a "golden parachute" payment, cash payments and medical benefits.

Yahoo CEO Marissa MayerJustin Sullivan/Getty ImagesWhen Verizon's $4.48 billion acquisition of Yahoo closes this June, Marissa Mayer will be stepping down as CEO. Her Yahoo stock, stock options and restricted stock units were worth a total of $186 million, on the basis of yesterday's stock price of $48.15, according to data in the documents sent to shareholders about the Verizon deal.

Under Mayer's leadership, Yahoo experienced two unprecedented security breaches affecting more than 1 billion users accounts - with the 2014 incident traced to Russian spies.

Verizon initially agreed in July to buy Yahoo's business for $4.83 billion.

The hefty payout comes despite Ms. Mayer's inability to accomplish what she was hired to do five years ago: revitalize the fading internet icon after its struggles with high employee and executive turnover and declines in ad revenue.

Mayer and other top Yahoo executives won't be part of the newly formed Internet company envisioned by Verizon, which will be called Oath.

In 2014, Yahoo fell out of the Fortune 500 for the first time.

When Yahoo! boss Marissa Mayer leaves the merged Verizon-AOL-Yahoo! behemoth, as is expected soon, she'll walk away with stocks and cash today worth $186m.

Mayer reportedly wont be sticking around after the sale, despite having written a blog in which she detailed that she planned to stay. Mayer also voluntarily gave up her 2017 bonus and equity grants.

If it had been a Wall Street hot shot that had come in and revived Yahoo's faltering stock and presided over a multibillion-dollar sale, that person wouldn't be begrudged a final payout of more than $100 million, Espelien suggested.

That said, the company's stock price has more than tripled on her watch (although the gain has more to do with the rise in value of Yahoo's investments in Alibaba and its Japanese joint-venture than in Yahoo's core business).

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