Yahoo CEO Marissa Mayer won’t hang around to run the investment fund, Altaba, that will be left over after the company sells its media assets to Verizon, the company says in a preliminary proxy filed today at the SEC. No need to feel sorry though: Her golden parachute is valued at $23.0 million including $3.0 million in cash, nearly $20.0 million in equity, and about $25,000 in benefits. She also has stock options and restricted stock units valued at nearly $76.8 million, the proxy notes.
The parachute has a so-called double trigger, meaning that she gets it when there’s a change in control and she’s terminated without what the contract would define as a good cause.
Thomas McInerney, a board member and former CFO of IAC/InterActiveCorp, will become CEO of the new operation that will consists of Yahoo’s investments in Alibaba Group and Yahoo Japan, along with convertible notes, and non-core patents. Altaba will become an investment company as defined by the Investment Company Act of 1940 but with stock that will trade under the symbol “AABA”.
In January, the company said that Mayer would not stay on the board of Altaba.
“Today’s filing represents an important step forward in the process of completing our transaction with Verizon,” Yahoo says. “We will continue to move ahead expeditiously toward the closing, which we expect to occur in the second quarter of 2017.” Verizon agreed to pay $4.48 billion for Yahoo’s media assets.
Last month, Yahoo agreed to cut the value of Verizon’s payment by $340 million to account for the potential fallout from two major hacks at the internet company. In 2013 more than 1 billion accounts were affected, and in 2014 another 500 million were hit.
Early this month the board’s Independent Committee investigating the hack, which took place while Mayer was CEO, decided that she should not receive her cash bonus for last year.
In addition, after “discussions with the board,” Mayer “offered to forgo” her 2017 annual equity award. The board accepted her offer.