Marketing Pilgrim's "Search Marketing" Channel

Marketing Pilgrim's Search Marketing Channel is sponsored by Bing Ads. Bing Ads is a service that provides pay per click advertising or search advertising on both the Bing and Yahoo! search engines. By advertising your business through Bing Ads, you can reach up to 158 million unique searchers on the Yahoo Bing Network. Best part is, if you open a new Bing Ads account today, you can earn a $50 ad credit to get started. Request your coupon code today!

Yahoo CEO’s Salary: $1M if She Sucks, $19M if She Kicks Butt!

Let me walk you through my two reactions to learning about the compensation package for newly appointed Yahoo CEO Carol Bartz.

First:

Your starting annual base salary will be at the rate of one million dollars ($1,000,000) per annum, less applicable taxes and withholdings…You will also be eligible to receive an annual target bonus of two hundred percent (200%) of your annual Base Salary…

My reaction? $1 million–maybe 2–to take over a company that is arguably in the sorriest state of its entire existence? I’d want at least $10 million on the table before I’d consider putting my good name alongside that mess.

Then I read:

Bartz, 60, could supplement her salary with a cash bonus up to $4 million, depending on Yahoo’s financial performance. She also is guaranteed a 2009 payment of $2.5 million in cash and $7.5 million in Yahoo stock…None of Bartz’s stock options will vest unless she can increase Yahoo’s stock price by at least 50 percent above the exercise price of her options.

All told, Bartz could earn a whopping $19 million, if she can come in and right the ship. This tells me two things.

  1. The Yahoo board is smart enough to offer a package that only really rewards if Bartz excels as CEO.
  2. Bartz is ultra confident that she can get Yahoo on track and its stock price back closer to $20.

Bartz may not be a big name–at least "not round these parts"–but clearly the signs are good that Yahoo’s not out for the count!

  • http://www.seojackass.com Jack

    At this point, what can Yahoo do to turn the ship around? In my opinion they have been beaten at every aspect of the game and it would take some real innovation not only in search, but all aspects of their company, or they will soon be just a footnote in the Wikipedia entry for Google.

    Jack’s last blog post..Relevancy in links not so relevant?

  • http://www.jordankasteler.com/utah-seo-pro-blog/ Utah SEO Pro

    That’s a win-win situation :) I think that’s very fair though.

    Utah SEO Pro’s last blog post..An Interview with Utah SEO Pro (Jordan Kasteler) by Martin Bowling

  • http://www.favbrowser.com Vygantas

    I wanna be Yahoo CEO. Would fix it in like 30 days.

    I mean, everyone could do that. Just bit logic, some research and you can resurrect it.

    Vygantas’s last blog post..Browsers are Hot Again

  • http://devbasu.com Dev Basu

    I think it’s a pretty fair compensation package, but I wouldn’t have taken the deal for $1M at the low end. That said, I think that the board made the best choice in Yahoo’s interests.

    Dev Basu’s last blog post..Bad Link Requests: Get Your Targeting Right

  • http://twitter.com/LindyNorris Lindy Norris

    Finally a company with a board of directors who appears to be responsible on this decision. I can’t believe all the stories about CEO’s that will get paid Millions if they get FIRED. Umm ya let’s reward someone for actually doing good work here. Only time will tell if Yahoo can be saved.

  • http://www.rnbhaven.com R&B Love Songs

    That sounds like a great strategy, so long as she doesn’t do anything to artificially inflate the stock price short term to ensure her compensation.

    Still, I think they’ve got the right idea.

  • http://www.gadgets4nowt.co.uk PS3

    That would sound a lot of money if I hadn’t just heard that the footballer (soccer star!) Kaka is being signed for 90 million GBP and will get 500,000 GBP a week wages!

  • http://www.dreamsystemsmedia.com/andrew-melchior.aspx Andrew Melchior

    It will be interesting to see what Bartz can do. I think she is going to have to make some pretty big changes and invent some great ideas to turn Yahoo back in the right direction, and it seems like she has some good incentive…19,000,000 good incentives, but what a task. Honestly, I wish her good luck and hopefully some fun helpful things come out of it for Yahoo users.

  • http://www.govisithawaii.com Sheila

    ahem – you missed an opportunity to use the more descriptive version of sucks – psuks ;-)

    Sheila’s last blog post..Tips for Visiting Hawaii Volcanoes National Park

  • http://www.marketingpilgrim.com Andy Beal

    @Sheila – Lolcat blog title FAIL! ;-)

  • http://www.portentinteractive.com ian

    I was skeptical about her at first, but her record, attitude and now this performance-based package make me think that a smart outsider like her could make a BIG difference. Ballmer’s probably throwing things right now.

    ian’s last blog post..Microsoft AdCenter Finally Brings Us Custom Date Ranges

  • http://www.dataflurry.com DF Marketing SEO

    Wow, thats a nice incentive to perform! lol

  • http://www.seoresults.co.za/pages/seo-tools/ Jacques Seoman

    Well this is good news for Yahoo, as a performance-based package like this means that she isn’t merely there as a board-buddy that could extract some more loot out of a company stuck in a downward spiral. Now let’s see her plans for Yahoo unfold!

  • http://www.newhomessection.com Jayson

    I’ll take it for $0 and get a million if I win!

    I think that’s a fair deal, I’d be more interested in learning what she earned after the first round.

  • http://www.velvetblues.com Shirley

    Yeh, that is low compensation if she’s bad… But who knows, she might just be what Yahoo needs. And she’ll definitely work harder for that bonus!

    Shirley’s last blog post..ALT vs. TITLE Attributes For Images in HTML

  • http://www.fairytalebaby.com Jason Kuiper

    That is more than a fair deal. You hold up your end of the bargain, and they will hold up theres!

  • Pingback: » Yahoo gets a new boss and more of this week’s search engine news (Jan 18)

  • http://www.free-istuff.co.uk Xbox 360

    there’s an incentive to work harder if ever I saw one

  • http://www.netage.co.za Goran Web Design

    Good idea from YAhoo!’s side.. ensure they don’t just hire someone who’s along for an overpaid ride to the company’s financial decimation! And, one assumes, she’s confident she can help the company get back on it’s feet.. the next year or two should be interesting

  • http://www.imarketingonline.com Brandon

    Yeah I think yahoo is offering that bonus as an incentive for her to work harder to earn it. Good strategy by them. But 1M is still good money IMHO lol

    Brandon’s last blog post..Monetizing A Website To Earn An Income

  • http://www.frankthinking.com Frank Reed

    Oh no! This reeks of responsible corporate activity. We can’t have that. It’ll cut down on the news stream to complain about how Yahoo! is wasting their (stockholder’s) money.

    I actually have to start rooting for these guys since there is apparently some common sense and fiscal conservatism on the board (at least outwardly).

    @Andy, I’m not so sure that she is confident she can turn it around. Maybe the base and cash payout is actually reasonable to her and other “step up” clauses (varying degrees of success rewarded as well as the final goal) exist that we are not privy to. Who knows. I’m just happy to see that someone took the job!

    Frank Reed’s last blog post..Typical Twitter Types to Tolerate and Twollow

  • http://www.brickmarketing.com Nick Stamoulis

    It is crazy that one of the most trafficked websites in the world is such a mess they cannot see a light at the end of the tunnel. It sounds like they really need to take things in a new direction.

  • http://friendster-layouts.me Friendster Layouts

    Wow! That is a very huge amount. I wish I could also earn that much some time in the future.

  • http://financialbreakthrough101.com/workfromhomeblog/ Kenney and Kim

    I love it. I think more companies and almost all publicly traded companies should go to a performanced based salary. Get the job done get paid. I mean your not gonna starve on a $1 million salary, so she’ll be alright. But the upside is awesome.

    Maybe Yahoo will set the trend for this new type of CEO salary offerings. Especially in a economy like this one.

  • Srv

    I see this perfectly placed. For the best interest of everyone, we need Yahoo to stood up and give some fight to Google.

    I hope Yahoo will come up strong.

  • http://www.buyatank.com.au water Tanks

    I think this is the way most ceo should be paid.
    Alot of seo are overpaid for constant paid performances and then when they get rid of them, they give them a nice multi million dollar golden hand shake…

    Thanks for the article