December 6, 2015 10:35 pm -


If Yahoo sells off its core business, Marissa Mayer would get far more than the company is worth.

 Image by © Martin Klimek/ZUMA Press/Corbis

Image by © Martin Klimek/ZUMA Press/Corbis

…canning Mayer due to a sale would cost Yahoo nearly $160 million. Or, put another way, nearly $160 million more than the market currently values Yahoo’s core business. Firing her without a sale would be significantly cheaper, but she’d still get immediate vesting of her entire “make whole” stock agreement and any other stock that was scheduled to vest within six months of her termination. Based on last year’s numbers, the company estimates that it would have worked out to just a bit more than $36 million.

To be sure, these numbers are a bit misleading because Yahoo’s stock price—while much higher than when Mayer took over—has fallen 32% since they were calculated at the end of 2014. That would bring the change-of-control severance down to approximately $108 million, and the regular severance down to around $25.5 million.

But those are still ridiculously high numbers, and make me wonder how some of Yahoo’s directors could think about firing Mayer without following her out the door.



D.B. Hirsch
D.B. Hirsch is a political activist, news junkie, and retired ad copy writer and spin doctor. He lives in Brooklyn, New York.