Yahoo! Chairman takes home $1 per year

Yahoo’s Chairman, Terry Semel, will be taking home an annual salary of only $1.00PHP 59INR 85EUR 0.95CNY 7, down from the previous $600,000PHP 35,211,300INR 50,849,880EUR 571,380CNY 4,366,980 he’s getting the previous year.

In exchange for the salary downgrade, he’ll get 6 Million Yahoo stock options, valued at $31.59PHP 1,854INR 2,677EUR 30CNY 230. 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 $35PHP 2,054INR 2,966EUR 33CNY 255 on Nasdaq, just $3.41PHP 200INR 289EUR 3CNY 25 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 $20.46PHP 1,201INR 1,734EUR 19CNY 149 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 $429PHP 25,176INR 36,358EUR 409CNY 3,122 million during the past three years, according to SEC documents.

Terry Semel has had a total of $429PHP 25,176INR 36,358EUR 409CNY 3,122 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 $1PHP 59INR 85EUR 0.95CNY 7 a year in exchange for billions of Google stocks.

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