New Yahoo! (NASDAQ: YHOO) COO Henrique de Castro will receive a base salary of $600,000 as he moves from Google (NASDAQ: GOOG) to the portal company. The amount is a pittance compared to his massive package
The 8-K filed with the SEC shows:
The Company entered into an employment offer letter dated October 15, 2012 (the “Agreement”) with Mr. de Castro. The Agreement has no specified term, and Mr. de Castro’s employment with the Company will be on an at-will basis. If Mr. de Castro has not obtained a work visa prior to the Start Date, he will initially be employed by a United Kingdom subsidiary of the Company and will be based in London. After a work visa enabling him to work in the United States is issued, he will relocate to Sunnyvale, California and become an employee of Yahoo!. The material terms of the Agreement are summarized below.
Base Salary and Bonus. Mr. de Castro will receive an annual base salary of $600,000 and, beginning in 2013, he will be eligible for an annual bonus under the Company’s Executive Incentive Plan with a target amount of 90% of annual base salary. Both base salary and bonus are subject to annual review.
One-Time Retention Award (Vesting Over Four Calendar Years). Mr. de Castro will receive a one-time retention equity award. $18,000,000 of this equity award will be granted as restricted stock units and $18,000,000 will be in the form of performance-based stock options. The restricted stock units will vest over four years, with one-fourth of the restricted stock units vesting on the first anniversary of the grant date, and the remainder in equal monthly installments. The stock options will vest one-fourth on July 26, 2013 and one-fourth on January 26 of each of 2014, 2015 and 2016, subject to performance-based vesting requirements. The Compensation and Leadership Development Committee of the Board will establish the performance vesting criteria based on the Company’s business and strategic plans. The restricted stock units will be granted on the first regularly scheduled grant date after the Start Date and the performance-based options will be granted on the first regularly scheduled grant date that is after the Start Date and on or after November 26, 2012.
Make-Whole Cash Bonus and Restricted Stock Units (Vesting Over Four Years). To compensate Mr. de Castro for forfeiture of compensation from his previous employer, he will receive a cash bonus of $1,000,000, payable within seven business days after the Start Date.
Douglas A. McIntyre