Yahoo! Chairman takes home $1 per year

Yahoo’s Chairman, Terry Semel, will be taking home an annual salary of only $1.00, down from the previous $600,000 he’s getting the previous year.

In exchange for the salary downgrade, he’ll get 6 Million Yahoo stock options, valued at $31.59. So, even if he’s not getting any monthly check, if Yahoo’s stock is higher the following year, he’s able to cash in with his stocks. Say, by December 2007, Yahoo’s stock is valued at $35 on Nasdaq, just $3.41 higher than it is now. Semel can cash some of his stock options. If he gives up all of the 6 million stocks, he’ll go home with $20.46 million.

On top of that, he’ll be awarded an additional 1 million in stock options each year until 2008.

Since Semel’s arrival, Yahoo’s stock price has tripled despite a recent slump in the shares. Semel has cashed in on the run-up by selling 18.1 million of his stock options for a gain of $429 million during the past three years, according to SEC documents.

Terry Semel has had a total of $429 million from 18.1 million stocks he sold in the last 3 years he’s been with Yahoo.

On another note, Google’s two founders Larry Page and Sergey Brin are also getting $1 a year in exchange for billions of Google stocks.

{full story here}

[tags]yahoo, exec, stocks, nasdaq, terry semel[/tags]

Abe Olandres

Abe is the founder and Editor-in-Chief of YugaTech with over 20 years of experience in the technology industry. He is one of the pioneers of blogging in the country and considered by many as the Father of Tech Blogging in the Philippines. He is also a technology consultant, a tech columnist with several national publications, resource speaker and mentor/advisor to several start-up companies.

https://www.yugatech.com

7 Comments

small garden says:

13 years ago

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- Reply
Fleeb says:

18 years ago

Same with Steve Jobs
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deuts says:

18 years ago

A great incentive to have his company perform better.

and a great incentive to misstate financial statements too! watchout auditors! lol…
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vance says:

18 years ago

seriously! they are all rich people, sa google which already have done that technique for sometime now, the 3 key people are billionaires or so they said before the were given the $1 salary. same thing with yahoo and they get stock and other privelleges thats not bad…
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J. Angelo Racoma says:

18 years ago

A great incentive to have his company perform better.
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Mark says:

18 years ago

Seriously? :D
- Reply
vance says:

18 years ago

hehe siguro nainggit sila sa google hehe kaya siguro ginaya nila hehe. but of them are rich people and they still have the stock options.
- Reply