Yahoo Inc said that its board of directors have shrunk Chairman and CEO Terry Semel's annual salary to $1, while boosting his overall future compensation through stock options and grants.
In a filing with the US Securities and Exchange Commission on Friday, Yahoo said its board had approved a long-term executive retention plan where Semel would receive $1 for the next three years till 2008.
He had been receiving a salary of $600,000 per annum for the past three years.
Yahoo is not unique among Silicon Valley companies in de-emphasising salary and linking compensation to company performance in the form of share bonuses.
Earlier in 2004, Google Inc, Yahoo's biggest rival, had paid $1 in salary to its top executives.
Google’s Co-founder Larry Page, Sergey Brin and CEO Eric Schmidt were the astounding billionaires who received compensation through stock options and grants.
The world's largest Internet media company said Semel stands to benefit from a discretionary bonus in the form of a fully vested stock option of up to 1 million shares a year, priced at Yahoo's closing trading price the day of the grant.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment