Yahoo’s former Chief Operating Officer Henrique de Castro will receive $58 million even though he was fired after just 15 months at the company, making his severance package one of the largest ever, CNN Money reported
CEO Marissa Mayer fired de Castro in January, reportedly over Yahoo’s advertising revenue.
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“During my own reflection, I made the difficult decision that our COO, Henrique de Castro, should leave the company,” Mayer said in a press release, Time reported
. “I appreciate Henrique’s contributions and wish him the best in his future endeavors.”
In an SEC filing this week, Yahoo said de Castro didn’t get a bonus in 2013, but did earn a $600,000 salary and stock grants and options that brought his payment to about $11 million. In 2012, he got $39 million, but CNN said most of that would be forfeited because the stock wasn’t vested when he left.
Yahoo’s increasing stock price was responsible for much of the golden parachute’s value, CNN said.
MarketLand broke down what de Castro made into a monthly total
for his time at Yahoo, coming up with a whopping $3.8 million each month.
USA Today reported that Yahoo’s board defended de Castro's compensation package
when he was hired by saying he “had a unique set of highly valuable skills and experiences that would be key to returning the company to long-term growth and success and would best serve long-term shareholder interests."
Like others assessing how the severance package could be so high, USA Today pointed to increased stock prices. The newspaper explained that those weren’t necessarily due to excellent management, but Yahoo’s market value was tied to the company’s 24 percent ownership of Alibaba. That Chinese company is planning an initial public stock offering that is expected to put its value at $200 billion, USA Today said.
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