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It's interesting that people only get mad about golden parachutes given to "rock star" CEOs when things are going poorly for the company that hired them. I feel
by leroy_masochist 10y ago
It's interesting that people only get mad about golden parachutes given to "rock star" CEOs when things are going poorly for the company that hired them. I feel like we should do a better job about calling out these agreements whenever they're inked; it's publicly available information in the case of publicly traded companies.
Some kind of severance guarantee for the new CEO in case they get fired, OK, I get it. You need to keep your kids in private school and continue to pay your mortgage for the period of time while you find something else to do, fine, no problem. I'd even be fine with a healthy multiple of what that kind of expensive lifestyle costs for 6 months. In Mayer's case I'd even say that a million bucks might be justified, given that it will probably take her a while to find something else to do.
But an agreement that will likely soon result in a $55mm payment to an outgoing CEO who has spent nearly 4 years pissing money away in bad acquisitions and destroying value across multiple verticals is absurd.
- a_small_island 10y agoThe theory is that no one good would take the job because the likelihood of failure was so high without a parachute. This type of ousting will certainly hurt Mayer's future CEO options, or so the theory goes.
- leroy_masochist 10y agoI guess it depends on how you define failure. I agree that elevating Yahoo to its previous place in the SV hierarchy would have been a tall order, but I think that prudent management of healthy business verticals combined with a conservative and thoughtful approach to acquisitions would have been pretty doable.