Yahoo’s new CEO, Carol Bartz, will be paid an annual base salary of $1 million, according to an 8-K filing with the SEC. Bartz’s four-year contract, dated Jan. 13, also makes her eligible for an annual target bonus of 200 percent of base pay, or $2 million, which will be based on her performance and ultimately determined by the board. If her performance is deemed particularly strong, she stands to get a maximum of two times the target amount, meaning she could get $4 million in bonuses. Her predecessor, Jerry Yang, had been paid a base salary of $1 a year, while Sue Decker, Yahoo’s soon-to-be ex president, got bumped up to $850,000 from $500,000, as <a href="http://www.paidcontent.org/entry/419-yahoo-susan-deckers-salary-shoots-up-yang-still-at-1-salary” title=”we reported”>we reported back in March.
The filing also noted that in order to compensate Bartz for the forfeiture of the value of equity grants and post-employment medical coverage from her former company, Autodesk, the agreement provides for an equity grant valued at $10 million. The grant is will be parceled out to her in cash (25 percent) and restricted stock (75 percent). The agreement also gives Bartz 5 million shares of common stock. And if she is let go “without cause or for good reason,” Bartz will get “a lump sum payment equal to two times base salary” or $3 million. She also gets four weeks of vacation, up to $150,000 for “advisory fees” connected to the agreement — and a seat on the Yahoo (NSDQ: YHOO) board, which has been expanded to 12 to accommodate her.
– Tech Trader Daily: Eric Savitz took out his calculator and made a few rosy assumptions. In all, he suggests that Bartz stands to make a grand total of $40.75 million. How? Suppose the stock goes from $12 to $18. So assume she