Yahoo Chairman and Chief Executive Officer (CEO) Terry Semel will receive just US$1 as salary, along with at least six million stock options to soften the blow.
According to a Securities and Exchange Commission (SEC) document filed by Yahoo last Wednesday, Yahoo's board approved a plan to pay Semel an annual salary of $1 for the remainder of 2006 through 2008. However, he will be eligible for an annual bonus of up to one million "fully vested non-qualified stock options," according to the filing.
A separate SEC document shows that Yahoo's board also granted Semel six million stock options at a strike price of US$31.59. Should Semel be fired or resign from Yahoo, the shares vest immediately, the filing said.
Semel joins Apple Computer CEO Steve Jobs in avoiding high income taxes by taking compensation in the form of securities rather than cash salary. Jobs also receives only US$1 per year from the computer maker.
In 2003, Jobs was granted 10 million restricted Apple shares, now worth over $500 million. Besides his menial salary and the share grant, he receives no other compensation from the company.