Yahoo CEO to be paid $1 salary

by admin June 3, 2006 at 7:05 am

Yahoo Chief Executive Terry Semel, the highest compensated executive in the San Francisco Bay Area last year at more than $56.8 million, will receive an annual salary of $1 through 2008, according to documents made public Friday by the U.S. Securities and Exchange Commission.

For the next three years, Semel also will be eligible to receive an annual bonus of up to 1 million shares and the option to purchase 6 million shares at an exercise price of $31.59 each as a retention incentive, under management compensation arrangements approved Wednesday by Yahoo’s Board of Directors compensation committee.

The board of directors said it doesn’t anticipate making any further equity grants to Semel in the next three years.

Semel was the highest-paid executive in the San Francisco Bay Area in 2004 and 2005, according to a survey released last week by the San Francisco Chronicle. Semel’s salary and bonus were $600,000 last year, and total compensation, including restricted stock and the estimated value of options, was $56.8 million, down from $131.2 million the year before, the study found.

Some studies show that the average pay for chief executives in 2005 was between $10 million and $15 million.

Full story: c|net