Yahoo’s chief keeps $8m as he leaves after five months, but loses millions more
The FT is reporting today that Yahoo’s chief executive Scott Thompson, who resigned from his post at the weekend, walks away with a settlement of $8m in cash and stock after five months.
The deal was promised to Thompson when he joined Yahoo from eBay-owned PayPal. Yahoo could have contested $2.5m of the settlement, but waived the right to do so.
However, Thompson has lost out on millions more in stock option, which have been cancelled by Yahoo giving rise to the impression that he was forced out after embellishing his CV:
Yahoo has cancelled up to $19m worth of stock options, bonuses and salary that its former chief executive Scott Thompson was likely to receive this year, adding to the impression he was forced out of the company as a result of the scandal surrounding his inflated educational qualifications.
The hasty settlement reached with Mr Thompson over the weekend has left him with $8m of cash and stock that Yahoo promised as an inducement for him to leave former employer PayPal. All but $2.5m of that was guaranteed and Yahoo waived the right to try to reclaim the rest, according to terms disclosed in a Securities and Exchange Commission filing late Monday.
News that Mr Thompson did not receive the sort of pay-off normally seen when US chief executives are forced out of their jobs came as it emerged that he told Yahoo’s board late last week that he was suffering from thyroid cancer, the FT reports.
Since joining Yahoo Thompson’s main contribution has been to announce that thousands of jobs are to go in the latest Yahoo restructure as the company continues to shrink as this infographic details.