Yahoo said Monday that after it completes the sale of its core search business to Verizon and Marissa Mayer and co-founder David Filo step down as board members of Altaba (the new name for the remaining holdings), Mayer could get a $23 million "golden parachute" payment, and Thomas McInerney will run the remaining part of the business as CEO.
Mayer's golden parachute, a large payment for top executives if they lose their position as a result of a deal, would include $19.97 million in equity and more than $3 million in cash, according to a regulatory filing. It would kick in if there is a change in control, as will be the case in the deal, and she is terminated "without cause" or "leaves for good reason" within a year.
Yahoo previously said that after the sale it would change its name from RemainCo to Altaba, whose remaining assets include a stake in Chinese online giant Alibaba Group and Yahoo Japan. The name is a combination of the words “alternate” and "Alibaba."
Mayer and Kenneth Goldman will continue as CEO and CFO, respectively, of the company prior to the deal close, the company said in a regulatory filing Monday. It also detailed the management roles for Altaba after the deal close. CEO McInerney will work with Alexi Wellman as chief financial and accounting officer, Arthur Chong as general counsel and secretary and DeAnn Fairfield Work as chief compliance officer.
Mayer was named CEO of Yahoo after she joined the company from Google in 2012. She is expected to remain with Yahoo's operations that become part of Verizon during the second quarter, but no specific role for her has been unveiled so far.
McInerney has served as a member of Yahoo’s board since April 2012 and was executive vp and CFO of Barry Diller's IAC/InterActiveCorp from January 2005 to March 2012.
Eric Brandt, who joined Yahoo’s board last March and is a former CFO of Broadcom Corp., was recently named chairman of Altaba.
The changes are set to kick in after the closing of the sale to Verizon, which was endangered by two big hacks of Yahoo’s user data. The companies recently said the final price tag will be $350 million lower than the original $4.83 billion price tag, or around $4.48 billion.
March 13, 9 a.n. Updated and corrected with details on when the golden parachute payment would become effective.