Terry Semel, Yahoo’s CEO is going to be paid an annual salary of $1. Semel will also be eligible for an annual bonus of 1 million shares and the option to purchase up to 6 million shares at $31.59 each for the next three years.


Terry Semel, Yahoo’s CEO is going to be paid an annual salary of $1. Semel will also be eligible for an annual bonus of 1 million shares and the option to purchase up to 6 million shares at $31.59 each for the next three years.

Terry Semel’s previous salary was $600,000 from 2003-2005.

The amount of the bonus will be based on Yahoo’s performance annually and has to be approved by the board of directors.

Yahoo has also granted Terry Semel a stock option to buy 6 million shares of Yahoo’s common stock at $31.59 which was the closing price of Yahoo’s stock as of May 31.

The stock option is offered annually for the next three years. The increments in stock progressively increases 25%, 35% and 40% annually, till Semel remains with Yahoo.

A Yahoo spokeswoman said: “he compensation arrangements outlined in today’s filing underscore the board’s high level of confidence in key members of the executive management team and their proven ability to drive outstanding performance.” [SOURCE]

The board of directors have also approved four-year performance and retention plans for Daniel Rosensweig, Yahoo’s COO and Susan Decker, CFO. They will each receive an annual salary of $500,000 from 2006-2009.

They will also be eligible to each receive an annual target cash bonus of $1 million from 2006-2009 based on their meeting the performance goals. They were also granted options to buy 2.1 million shares at $31.59.

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