All Scott Thompson has to do is show up as CEO of Yahoo (NSDQ: YHOO) for the next year or so and he stands to make around $25 million. If he actually meets a few performance goals, make that $27 million.
More than a quarter of that is a pay off for leaving his PayPal perch, up to $8 million in cash and equity to make up for what he left behind at eBay: $1.5 million cash and restricted stock units valued at $5 million set to vest March 15 and another $1 million RSUs set for March 15, 2013. He also gets an $11 million annual stock grant in February and a $5 million “inducement grant” for signing.
The base salary is a mere $1 million; that will be doubled with a guaranteed 50 percent of his target bonus — and could be tripled if he earns the whole bonus. This is like being guaranteed a trophy for showing up — a shiny, expensive one — with the chance to win another one by actually playing a game.
Maybe this could be the year boards finally agree that a bonus is something you earn, not an automatic top up, but I doubt it.
Speaking of boards, the Yahoo board, which increased by one to make room for Thompson, is looking for some new recruits to replace some longtime members, according to the WSJ. Nominations anyone? And who should he or she replace? More details in the SEC filing.