Yahoo Loves CEO Terry Semel – Gives Him Fat Raise
Terry Semel not only cashed out a boatload of Yahoo stocks last year which almost equals the worth of the economy of Tonga ($236 million), but then he got a raise from his employer – Yahoo. Yahoo must be happy with Terry Semel, happy enough that Yahoo announced in a regulatory filing that it made Semel’s pay better because he has become an “attractive candidate to competing organizations.” Yahoo said it “took aggressive action in 2004 to retain Mr. Semel.”
The Marin Independent Journal reports : Semel took advantage of a rebound in technology stock prices and sold 10 million shares of Yahoo worth $230 million last year, making his annual haul one of the largest ever for a corporate executive. He still holds $324 million worth of stock he can sell any time and another $71 million of restricted shares.
Semel’s pay increase includes: 1 million stock options he can cash out by the end of this year and another 1 million he can sell in 2006, provided the company meets certain financial goals. Semel can buy the shares at $34.75 each once they vest. Semel also received another 250,000 shares that he can sell in three years. The company did not increase Semel’s base pay, which is $600,000 annually.