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