Fired Yahoo CEO Carol Bartz could get $10.4-million severance
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Yahoo’s stock rose on Wednesday after investors saw that the online firm had fired CEO Carol Bartz.
The market’s reaction -- not exactly praise for her tenure -- seemingly added insult to injury, especially after Bartz was fired over the phone, as she reported.
But the now ex-chief exec might not be too unhappy to see Yahoo shares on the rise. That’s because her severance package could leave her with a $10.4-million cash-and-stock severance payout.
Of course, if Yahoo’s stock drops, so could the value of her severance.
‘No new compensatory or severance arrangements were entered into in connection with these leadership changes,’ Yahoo said in a Securities and Exchange Commission filing Tuesday. ‘Ms. Bartz will receive severance benefits for termination without cause as provided in her employment and equity award agreements.’
According to an April 29 SEC filing, Bartz would have received a cash severance of $5.2 million and a stock award of $5.2 million if she were fired at the end of 2010. According to CNNMoney, the first news outlet to report on Bartz’s severance, she could receive even more than that due to cash bonuses she may be owed for this year on top of her $1-million annual salary and stock options that could kick in if Yahoo’s shares hit certain highs by 2012.
Before Yahoo, Bartz was chief executive at Autodesk for 14 years. In January 2009, Bartz replaced Yahoo co-founder Jerry Yang as CEO after Yang failed to sell the company to Microsoft.
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-- Nathan Olivarez-Giles