Does anyone know how much Marissa Mayer is making?

The Yahoo CEO's complex compensation package leads to wildly different estimates of how much she'll get

The appointment of former Google executive Marissa Mayer as CEO of Yahoo had tech industry tongues wagging Monday when the surprise announcement was made. Today, there's just as much talk about how much she stands to earn at Yahoo, but what people are saying depends on where they are getting their news.

The complex compensation package, revealed in a regulatory filing with the U.S. Securities and Exchange Commission, appears to be testing financial journalists, who are coming up with a wide range of estimates.

"Yahoo to Pay CEO Mayer $100 Million Over Five Years," reported The Wall Street Journal, explaining that Mayer would receive US$5.4 million this year and around $20 million per year for each year after. All Things D, a Wall Street Journal sister site, reported Yahoo "could be paying its new CEO Marissa Mayer a total of close to $60 million."

CNN managed to find $71 million over five years in the regulatory filing, while Reuters almost agreed, reporting the pay "could total more than $70 million in salary, restricted stock, and stock options over five years."

When you're earning that much money, what's a million dollars anyway?

Among initial reporting, The Los Angeles Times came up with the fattest package: $129 million over five years -- more than double the All Things D total.

Given the confusion, perhaps the savviest reporting came from The New York Times, which didn't attempt to add up the numbers. "Yahoo's Mayer Gets Hefty Pay Package," it said.

The complex make-up of the compensation package is behind the different numbers.

Mayer will get a basic salary of $1 million.

That's simple enough.

Bonuses will total up to $2 million per year, but can be $4 million this year.

That's not difficult, either. But then there are stock options, restricted stock, equity grants and a one-time retention equity award.

And the language is hardly plain English:

"You will also receive a retention equity award under the Stock Plan with an aggregate award value of $30 million (the "Retention Equity Award"), such grant to be made to you at the same time, in the same forms (including the utilization of performance criteria), in the same manner, in the same proportions as the 2012 Annual Grant and subject to the same conditions, except that the Retention Equity Award restricted stock units will vest 1/5th on the anniversary of the Next Grant Date in each year from 2013 to 2017, and the Retention Equity Award options will be 1/5th (rather than 1/3rd) vesting in equal installments at the 12-month, 18-month, 30-month, 42-month and 54-month anniversaries of the Next Grant Date."

Perhaps it's no wonder that journalists have come up with wildly different estimates for how much Mayer could make over the next five years. So perhaps the best answer to the question of how much she'll take home is this one: a lot more than you.

Martyn Williams covers mobile telecoms, Silicon Valley and general technology breaking news for The IDG News Service. Follow Martyn on Twitter at @martyn_williams. Martyn's e-mail address is martyn_williams@idg.com

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Martyn Williams

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?