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Marissa Mayer to exit Yahoo with $186 million payout

27 April 2017

Marissa Mayer, Yahoo! Inc.'s (NASDAQ:YHOO) CEO, will walk away from the company with a $186 million golden parachute.

A series of acquisitions, such as the social network Tumblr, also failed to pay off for the group, and Yahoo looked to separate the Alibaba stake from its core operations.

As of April 3, the Yahoo CEO owned 4.49 million shares of common stock, according to an SEC filing by the internet company Monday.

Under Mayer's leadership, Yahoo experienced two unprecedented security breaches affecting more than 1 billion users accounts - with the 2014 incident traced to Russian spies.

New York-based Verizon Communications (NYSE:VZ), the largest wireless communications service provider in the United States, is buying Yahoo (NASDAQ:YHOO) for $4.49 billion.

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The hefty payout comes despite Ms. Mayer's inability to accomplish what she was hired to do five years ago: revitalize the fading internet icon after its struggles with high employee and executive turnover and declines in ad revenue. So, the company's investors will have to vote on the deal this June. At the closing, all outstanding Yahoo stock options will be fully vested and exercisable, the filing noted.

A yes vote, the widely expected outcome, would bring CEO Marissa Mayer's unsuccessful five-year effort to revive the fortunes of the company to an end. All told, her time at Yahoo will have netted her well over $200 million, according to calculations based on company filings. Mayer admitted that year the company had only started investing in mobile in 2013 and was "late" and "behind".

Mayer will not be part of Yahoo's new management.

But Mayer, the company's chief executive, will be well compensated for her failure. This will no longer include the valuation of stock she has already sold or the bonus she chose to give up due to the massive cyber security breaches revealed earlier previous year.

Ms Mayer, 41, who joined Yahoo in 2012 and presided over a series of ill-timed purchases, was in line for a smaller sum previous year of $55m but the company's recent rise in share price has sent her pay package soaring. This venture will be spearheaded by Thomas McInerney, a Yahoo director who carried out the Verizon deal.

Marissa Mayer to exit Yahoo with $186 million payout