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Former Yahoo COO Henrique de Castro
In what might be the purest example of income inequality, Yahoo's recently ousted Chief Operating Officer Henrique de Castro received a $58 million severance package after only 15 months on the job:
Yahoo's recently fired chief operating officer, Henrique de Castro, left the Internet company with a severance package of $58 million even though he lasted just 15 months on the job.

The disclosure in a regulatory filing may lead to more second-guessing of Yahoo CEO Marissa Mayer's decision to hire de Castro as her second-in-command in October 2012.

Henrique de Casto apparently ruffled the feathers of ad execs from the start and despite Yahoo's growth over the same period, ad revenue continued to drop:
But he had an icy relationship with ad execs who found him aloof when they were accustomed to being catered-to by Yahoo brass.

His approach wasn't exactly working: ad revenue at the portal declined over the past year, even as Ms. Mayer touted splashy relaunches of email, the homepage, Flickr and a $1.1 billion acquisition of Tumblr and Summly.

In recent months Mr. de Castro had stopped speaking for the company. De Castro was conspicuously absent at the Consumer Electronics Show in Las Vegas, where Yahoo generally starts talks with big advertisers. Ms. Mayer gave a keynote and head deal maker Jacqueline Reses gave presentations to WPP and IPG agencies.

For what it's worth, according to simplyhired.com, the average Yahoo salary is $61,000.
The average salary for yahoo jobs is $61,000. Average yahoo salaries can vary greatly due to company, location, industry, experience and benefits.
Don't you wish you could be so successful at failure?

Originally posted to Scout Finch on Thu Apr 17, 2014 at 07:46 AM PDT.

Also republished by Daily Kos.

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Comment Preferences

  •  $58 million may sound like a lot to you, Jen... (15+ / 0-)

    but he'll probably have to pay like $25 million in taxes... $25 million more than those lucky duckies who make so little they don't have to pay any federal taxes.

    ;-)

    •  You are thinking of minmum wage workers. (11+ / 0-)

      You know the ones so poor that they don't even earn the minimum threshold for itemized deductions.

      This guy will pay 8% tops, if any at all on that payout

      •  No, he will pay 39.6% plus 13.3% in CA (11+ / 0-)

        plus Medicare tax on all of it. All top executive severance pay is W2 income, taxed at the top marginal rate for federal and state purposes. None of it can possibly qualify for capital gains treatment.

        "let's talk about that"

        by VClib on Thu Apr 17, 2014 at 08:17:50 AM PDT

        [ Parent ]

        •  Prove it (5+ / 0-)

          Post a link showing this guy actually paid their fair share.

          And I bet this grifter files auarterly so you only have to wait three months to do it.

          •  All tax information is confidential (7+ / 0-)

            Only the taxpayer, his accountants and the taxing authorities have access to the actual returns, or quarterly payments. However, the tax law on this type of compensation is very clear, it's W2 income.

            "let's talk about that"

            by VClib on Thu Apr 17, 2014 at 09:32:26 AM PDT

            [ Parent ]

            •  Then how do we know if he paid his share? (1+ / 0-)
              Recommended by:
              Constantly Amazed

              As you unsuportely assert?

              Please tell us all where you have access to the 1% returns to make a statement like he will pay his fair share?

              •  All I am stating is what the tax law is (7+ / 0-)

                and at that level of severance how it will be taxed. No one can see the actual returns.

                "let's talk about that"

                by VClib on Thu Apr 17, 2014 at 09:48:40 AM PDT

                [ Parent ]

                •  Reality has established (1+ / 0-)
                  Recommended by:
                  YouKnowMe

                  The fact that the 1% weasel out of paying their fair share.

                  You are unsupportedly trying to dispute that.

                  Prove to us this 1% is the exceptionm

                  •  Horace - lower tax rates can be achieved (5+ / 0-)

                    from various types of investment income and there are a very small number of professionals who manage investment partnerships like private equity, venture capital, and hedge funds who are able to structure their incentive income in a manner that allows it to be taxed at the long term capital gains rate. That structure is only available to entities who manage partnerships. It is not available to corporations or corporate executives. All senior executive compensation at the Fortune 1000, including all stock options and restricted stock, is reported as W2 income and taxed at the top marginal rate. The same is true for severance pay.

                    "let's talk about that"

                    by VClib on Thu Apr 17, 2014 at 02:28:26 PM PDT

                    [ Parent ]

                    •  Which means nothing (3+ / 0-)
                      Recommended by:
                      kerplunk, stringer bell, bepanda

                      Why would you type out a bunch of crap like that?

                      It means as much as this:

                      s;cnahva ae[odij as]p[a dsf
                      asp[kj]pjav m\
                      sAPVJPOFR=-R=]ASDV
                      VIOUH;PASHV;AW [DJKJXCKoijoajcioc
                      kvodviavd[' zSllcxvjoPS

                      Do you REALLY think anyone is going to buy that line of bullshit?

                      All senior executive compensation at the Fortune 1000, including all stock options and restricted stock, is reported as W2 income and taxed at the top marginal rate.
                      What a load.
                      •  The commenter is apparently not aware (4+ / 0-)
                        Recommended by:
                        Capt Crunch, stringer bell, YouKnowMe, hbk

                        We know the rich game the system.

                      •  This is black and white tax law (1+ / 0-)
                        Recommended by:
                        itsjim

                        Severance pay is W2 income.

                        "let's talk about that"

                        by VClib on Thu Apr 17, 2014 at 10:31:51 PM PDT

                        [ Parent ]

                      •  Seriously? (1+ / 0-)
                        Recommended by:
                        Sparhawk

                        VClib's explanation was pretty clear. If you can't comprehend it, then you probably shouldn't be weighing in on the subject, let alone be calling "bullshit." Just like Horace's comment above, where he declares that:

                         

                        This guy will pay 8% tops, if any at all on that payout.
                        We are given no indication that this number came from anywhere other than Horace's ass. Yet he challenged VClib to provide empirical data to back up his argument. When he tried to explain how executive compensation works, a subject he is obviously familiar with, he is told that his explanation is "bullshit."

                        How is this different from the person who, in spite of all evidence to the contrary, insists that Jesus rode a dinosaur?

                        So endith the trick.

                        by itsjim on Fri Apr 18, 2014 at 05:13:13 AM PDT

                        [ Parent ]

                        •  Answer: (0+ / 0-)

                          Mitt Romney
                          Warren Buffett

                          Get a clue.

                          •  I tremble in the face of... (0+ / 0-)

                            ...your searing intellect.

                            So endith the trick.

                            by itsjim on Fri Apr 18, 2014 at 09:29:57 AM PDT

                            [ Parent ]

                          •  You should - Pollyanna. (0+ / 0-)
                          •  Capt Crunch - your comment displays your lack (1+ / 0-)
                            Recommended by:
                            itsjim

                            of understanding of this issue. Mitt Romney, who ran Bain Capital is one of the exceptions I mentioned in my comment. Bain Capital is a private equity firm where the managers can structure their incentive compensation to qualify for long term capital gains treatment. That's called a "carried interest".

                            Warren Bufett is a somewhat unusually case. Buffet manages a Fortune 500 company where he personally has a large ownership of shares, not options or restricted stock earned as compensation, but outright ownership of shares he has purchased with his own cash. He also only receives an annual salary of $125,000, not the $5-10 million that other CEOs of similar sized companies earn. Bufett's income comes from selling shares he has owned for decades and therefore qualify for long term capital gains tax treatment. Because his salary is so modest, as a CEO, it doesn't really impact his effective tax rate.

                            Other founder/executives like the founders of Google, Facebook, Microsoft and others, also have founders' shares that they own and did not receive as compensation. When they sell those shares the gain is taxed at the long term capital gains rate, however any compensation they receive is taxed at earned income rates.

                            I really am an expert in this space. This is all black and white tax law. You could learn something.

                            "let's talk about that"

                            by VClib on Fri Apr 18, 2014 at 11:03:59 AM PDT

                            [ Parent ]

                          •  Oh give it a rest - expert (0+ / 0-)

                            You're an expert making excuses for the monied class.

                            That's what you do 90% of the time.

                            First of all the issue isn't even taxes - it's the inequality of the situation.

                            You understand that don't you? Are you enough of an expert to get that much?

                            Hey - maybe YOU should pay attention, stop apologizing for the wealthy, as you regularly do, and then YOU might learn something... oh forget it. You're hopeless.

                          •  Captain Crunch - I expressed no opinons in this (0+ / 0-)

                            entire thread. What I have tried to do is educate people on the tax law and how it applies to this particular situation of severance. I only did so when people, who know absolutely nothing about tax law or the taxation of executive compensation, started posting information that is not correct. People can have any opinion they wish about the outrageous nature and amount of the compensation. That's their opinion, however when they write about how it is taxed, that is a matter of fact, not opinion. Either we are a fact based site or we aren't. Erroneous "facts" should always be corrected with the truth.

                            "let's talk about that"

                            by VClib on Fri Apr 18, 2014 at 04:27:44 PM PDT

                            [ Parent ]

                          •  You missed the point again (0+ / 0-)

                            I didn't say your apologist rhetoric was part of this thread.

                            I said you do it 90% of the time. Read what I said.

                            As to you being an expert - sez who? YOU? That's meaningless.
                            We're just supposed to take your word? Or we're supposed to take time to look up arcane tax laws? That's missing the point too.

                            The fact is the wealthy DO get a bigger break on taxes than the average working shmoe. I've never once seen you leap to the defense of the average worker and how unfair their situation is.
                            I've never once seen you offer your "expert" opinion to point out that the average workers are getting screwed.
                            Your "expert" opinion is always presented to downplay raging inequality. Your aim is not to present "facts".  It's a rhetorical device to limit the perception of the game being rigged. Always.

                            Maybe you should learn to be a little more subtle in your fawning desire to mythologize the wealthy.

                          •  People who actually know the law (0+ / 0-)

                            comment frequently in the threads and in Kosmail about my expertise. If you know the subject matter it's clear by what I write that I know the law in this area.

                            I bring no particular insight or expertise to the issue of the average worker getting screwed and we certainly have thousands of people writing diaries on those topics. What we don't have is many people with the experience and expertise in the areas where I most often write. That gives me the opportunity to educate people who actually want to know facts and the law in areas of executive compensation, investments, and corporate governance. That's my contribution here. While I some times give opinions, most of my nearly 35,000 comments here are about facts, something we could use more of at DKOS.

                            "let's talk about that"

                            by VClib on Fri Apr 18, 2014 at 05:46:20 PM PDT

                            [ Parent ]

                          •  What a load (0+ / 0-)
                            People who actually know the law comment frequently in the threads and in Kosmail about my expertise.
                            Ha! Yeah - folks like Coffetalk and Pi Li. Folks that play the same rhetorical game as you. That's hilarious.

                            I stand by my point  90% of your comments are specifically designed to make the wealthy look good. Your comments have nothing to do with education - they're thinly veiled propaganda.

                            You don't bring facts to the table - you bring propaganda.

                            And that's something we could use less of here.

                          •  Capt Crunch - even in just this thread (0+ / 0-)

                            Heart of the Rockies, itsjim, and al23, all three with five digit UIDs, commented on my expertise and your lack of knowledge in this subject matter.

                            You are embarrassing yourself.

                            "let's talk about that"

                            by VClib on Fri Apr 18, 2014 at 07:37:37 PM PDT

                            [ Parent ]

                          •  You can't be this dense (0+ / 0-)

                            i mean really.

                            To miss the point i'm making over and over. To miss it so entirely you don't even address it?

                            WOW - that's dense.

                            I stand by my point  90% of your comments are specifically designed to make the wealthy look good. Your comments have nothing to do with education - they're thinly veiled propaganda.
                            Read. Comprehend. Think. Respond.

                            Is that really so hard to do?

                          •  Why do you refuse to be educated on the facts? (0+ / 0-)

                            "let's talk about that"

                            by VClib on Fri Apr 18, 2014 at 08:48:24 PM PDT

                            [ Parent ]

                          •  You refuse to live in the real world (0+ / 0-)

                            You refuse to acknowledge the entire point of my post

                            You just spew out a bunch of bull shit - with nothing to back it up - and want me to refer to it as facts?

                            You have got to be either kidding, lying or incredibly stupid.

              •  How do you know he didn't (0+ / 0-)

                You're the one claiming he's violating the law here (baselessly).

                (-5.50,-6.67): Left Libertarian
                Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

                by Sparhawk on Thu Apr 17, 2014 at 07:00:25 PM PDT

                [ Parent ]

            •  that is sad. (0+ / 0-)

              really, there should be competition to pay the most taxes.  After all money is speech, so it would say who loves America most.  And what is the point of winning the competition and not inspiring others to do more.  Taxes and income should be public knowlege.

              •  The tax returns of individuals should NEVER (0+ / 0-)

                be pubic information. It is a felony for anyone, the IRS, other government employees, professional tax or accounting firms, or the public, to disclose the tax information of another person without their express written permission, and that's how it should always be.

                Money is speech only when you spend that money to communicate directly with voters, it's is certainly NOT speech to pay taxes.

                "let's talk about that"

                by VClib on Fri Apr 18, 2014 at 10:53:02 AM PDT

                [ Parent ]

        •  Let's say he reaped only 40% of that, (9+ / 0-)

          after taxes and Medicare, etc.... 40% of $58 million is $23.2 million. For severance after 15 months on a job. $23.2 million. Twenty-three million and two hundred thousand dollars free and clear. For what?!?

          curious portal - to a world of paintings, lyric-poems, art writing, and graphic and web design

          by asterkitty on Thu Apr 17, 2014 at 08:59:48 AM PDT

          [ Parent ]

        •  Marginal Rate Over $407.6K and $508.5K (4+ / 0-)
          Recommended by:
          stringer bell, llywrch, ChemBob, hbk

          Those rates you quote apply only to the marginal income over those federal and state thresholds.

          I'd gladly stand in line for the lower severance package of $407K after only 15 months on the job to avoid the maximum tax bracket.  Wouldn't you?

          I am also unbelievably unsympathetic for him having to pay 52.9% of the remaining $57.0 million.

          At this point, I just want America to admit that it still doesn't want its Black citizens to live in any state other than terror, subservience and inferiority, under pain of death. I can handle American racism, but I can't handle American denial.

          by shanikka on Thu Apr 17, 2014 at 07:11:04 PM PDT

          [ Parent ]

          •  shanikka - I wasn't commenting on the circumstance (1+ / 0-)
            Recommended by:
            Sparhawk

            only it's taxation. At nearly $60 million the threshold amounts are a rounding error.

            I understand why his severance is so high, Yahoo had to make him whole on his Google options to lure him to leave Google. Unfortunately, things didn't work out at Yahoo, but he had a contract with stated severance. I don't feel sorry for him, but don't feel any malice either. Had he stayed at Google he would have made as much there.

            "let's talk about that"

            by VClib on Thu Apr 17, 2014 at 10:39:11 PM PDT

            [ Parent ]

            •  I Don't Feel Malice for Him (4+ / 0-)
              Recommended by:
              itsjim, No Exit, VClib, hbk

              But neither do I feel that the structure of golden parachutes is indicative of talent in the C-Suite, as too many folks here are claiming justifies the payment.  The $58M he got wasn't earned through his brainpower or Melissa Mayer's.  It was earned by the low level workers at Yahoo (and derivatively at Google, since I agree with you that the deal was intended to "make him whole" on his unvested options).

              Since of course none of the C-Suite could making their companies anywhere near the amount of cash that permits a $58M golden parachute but for those lower-level folks, most of who will be lucky at the next round of pump-up-the-shareholders-Christmas layoffs to get 1 week severance for every year of employment.

              And that's the point I'm trying to make.  The entire system of C suite compensation and incentives is based upon the anti-worker myth subscribed to by the business world (and, going by comments here, bought into by a lot of fools) that it is the corporate leaders, and not the many thousands below them, that generate wealth for the company and the stockholders (through their ideas and supposed management skill, although most C-suiters are terrible managers on a day-to-day basis, which is why they have armies of actual managers below them effectuating their will and they spend their time giving speeches and answering to the stockholders).  This is a entirely self-serving fiction created to justify what has become a morally untenable situation in terms of C suite pay vis a vis the workers at middle management and below, for 2 reasons:  (a) corporations are unwilling to test the idea that others, far less expensive and equally talented, could have equally great profitable ideas and be better at management than the narrow class of folks with "the right paper"; (b) You can have all the ideas in the world, but if you can't personally get them done without others, you don't deserve to make tens of thousands of times more than they do, especially when you fuck up at your job and lose it; for most, they will never see that type of money having never fucked up at their job when they get laid off.

              I've yet to see anyone in the C suite in recent decades here in Silicon Valley actually be good at creating something (other than lots of splashy ideas that they couldn't get done without all those minions who are not going to be getting $58M when they get fired for cause).

              Sorry, that's just how I see it.  And I've been here in Silicon Valley since 1978.

              I do not derogate his contractual rights, assuming as we both do that this was the deal he cut.  However, that this deal exists at all is what I believe is indefensible, for any reason.

              At this point, I just want America to admit that it still doesn't want its Black citizens to live in any state other than terror, subservience and inferiority, under pain of death. I can handle American racism, but I can't handle American denial.

              by shanikka on Fri Apr 18, 2014 at 05:09:56 AM PDT

              [ Parent ]

              •  I think your view of C-level executives is... (2+ / 0-)
                Recommended by:
                VClib, Sparhawk

                ...somewhat narrow. I work for a huge multi-national telecom company and have some insight into what they do. At least in the company I work for, the C-Level executives are not managers. They define high level business strategy and are the closers of big deals. By big, I mean multi-billion dollars. They don't toil over spreadsheets or craft detailed legal language, They have armies of people who do that. What they do is leverage peer level relationships with their counterparts who are authorized to execute deals of that magnitude, and close them. Anyone who thinks that this is easy, or something the average schlub could do has never swam in the really big fish tanks.

                Please note that I am not defending their obscene comp packages, or discounting the value of us worker bees. But to dismiss them as speech makers is not fair either.

                So endith the trick.

                by itsjim on Fri Apr 18, 2014 at 06:10:39 AM PDT

                [ Parent ]

                •  itsjim - I think you have a valuable insight (1+ / 0-)
                  Recommended by:
                  Sparhawk

                  At the Fortune 1000 the C-suite executives aren't really day to day managers, they are focused on big strategic issues and deals.

                  "let's talk about that"

                  by VClib on Fri Apr 18, 2014 at 07:07:59 AM PDT

                  [ Parent ]

                •  We Don't Disagree (2+ / 0-)
                  Recommended by:
                  hbk, itsjim

                  They aren't managers.  They are strategists, first and foremost.  And relationship people.

                  But now ask yourself why that particular skill set is orders of magnitude more valuable than anything else in a company.  And ask yourself what is the factual foundation for the assumption that this skillset isn't possessed by huge percentages of the folks that actually work for C-suiters?

                  I know quite a few C-suiters.  Most are very nice people and talented people.  But not uniquely so.  And maybe it's just my luck in terms of who I hang out with in that class, but few ever privately claim that they deserve to make what they make in the abstract.  That claim is made only in comparison to other people in the suite.  It is only that self-feeding exponential growth in pay (based upon the myth of 'rarity' in skill) that permits such a situation--and most C-suiters know it.  Few are so deluded as to think differently (unlike defending this package not based upon contract law, but on the merits of so-called C-suite worth).

                  At this point, I just want America to admit that it still doesn't want its Black citizens to live in any state other than terror, subservience and inferiority, under pain of death. I can handle American racism, but I can't handle American denial.

                  by shanikka on Fri Apr 18, 2014 at 07:23:35 AM PDT

                  [ Parent ]

                  •  Re (3+ / 0-)
                    Recommended by:
                    itsjim, shanikka, VClib
                    But now ask yourself why that particular skill set is orders of magnitude more valuable than anything else in a company.  
                    Because if mistakes are made at that magnitude they could cost the company millions or billions. "Regular worker bees" have far less ability to directly impact the bottom line.

                    (-5.50,-6.67): Left Libertarian
                    Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

                    by Sparhawk on Fri Apr 18, 2014 at 09:22:19 AM PDT

                    [ Parent ]

                    •  Ahh (0+ / 0-)

                      This myth I've actually seen implode in operation at the original Silicon Valley software companies from the late 1970's and early 1980s.  A mistake made in the C Suite is readily correctible by all those minions below.  And it is very easy to do so, all while keeping one's job.  In contrast, a serious mistake by someone on the operational line can and has cost companies millions in this valley.  Mistakes that the C Suite routinely then claims it knew nothing about.

                      At this point, I just want America to admit that it still doesn't want its Black citizens to live in any state other than terror, subservience and inferiority, under pain of death. I can handle American racism, but I can't handle American denial.

                      by shanikka on Fri Apr 18, 2014 at 11:03:01 AM PDT

                      [ Parent ]

                  •  You can't look at it that way. (1+ / 0-)
                    Recommended by:
                    VClib

                    It is a matter of responsibility. The CEO of the company I work for was responsible for $129 billion in revenue last year. By responsible, I mean that he had to lead an organization of 250,000 people to achieve those numbers in a highly competitive, high volume, super-regulated market, where the state of the art of technology is constantly changing and one bad decision could significantly impact the national economy. He is the one throat for the board of directors, and the millions of stockholders, and the government to choke. I can tell you that this guy doesn't sit around in an ivory tower eating caviar and thinking lofty thoughts.

                    You won't convince me that a "huge percentage" of the people who work for this guy would even be willing, let alone capable of shouldering that responsibility. Sure, there are probably a handful of people in the company with the necessary skills, background, and disposition and eventually some of them will get the chance to take that position. But those people don't grow on trees.

                    Put in perspective, as a relative bottom dweller, I was responsible for about $6 million of that revenue. So he was responsible for 21,500 times more business than me. But he wasn't paid 21,500 times my salary. Not even close. In fact, this company has taken pretty good care of me and my family, and 250,000 other families. Sorry, but I don't resent what he gets paid. You couldn't pay me enough to do that job.

                    So endith the trick.

                    by itsjim on Fri Apr 18, 2014 at 09:24:54 AM PDT

                    [ Parent ]

                    •  I Can, and Do, Look at it That Way (0+ / 0-)

                      Especially if one is getting paid for, ultimately, not having been responsible for the very thing that presumably justifies all that money.

                      You have no idea who would shoulder responsibility for what until you ask.  Worker cooperatives, successful ones, belie this idea that only overpaid C suiters are capable of emotionally, or decisionally, handling such "responsibility."

                      Also, I'm not sure where you get the idea that managing 21K times the revenue requires either 21K times the skill or 21K times the pay.  Try it sometimes =)

                      At this point, I just want America to admit that it still doesn't want its Black citizens to live in any state other than terror, subservience and inferiority, under pain of death. I can handle American racism, but I can't handle American denial.

                      by shanikka on Fri Apr 18, 2014 at 11:06:04 AM PDT

                      [ Parent ]

        •  Well, if he finds that to be a burden (4+ / 0-)
          Recommended by:
          shanikka, YouKnowMe, ChemBob, hbk

          I'll be happy to trade paychecks with him.

          If the pilot's good, see, I mean if he's reeeally sharp, he can barrel that baby in so low... oh you oughta see it sometime. It's a sight. A big plane like a '52... varrrooom! Its jet exhaust... frying chickens in the barnyard!

          by Major Kong on Thu Apr 17, 2014 at 07:43:00 PM PDT

          [ Parent ]

          •  MajorK - I don't think he has said anything (0+ / 0-)

            in public about the size of his severance or its taxation. I am sure he will take his after tax windfall and live an enjoyable life. My guess is that you will see him self-finance a startup and get back in the game.

            "let's talk about that"

            by VClib on Thu Apr 17, 2014 at 10:41:11 PM PDT

            [ Parent ]

    •  Well He Would If He Took It as Straight Compen (5+ / 0-)
      Recommended by:
      Trix, eyo, raboof, mooshter, hbk

      sation.

      Something tells me he can invest part of it into things like a 3 masted home or a libertarian educational broadcast network etc. and get more benefit from it than blowing a full 50% in the nominal tax rates.

      We are called to speak for the weak, for the voiceless, for victims of our nation and for those it calls enemy.... --ML King "Beyond Vietnam"

      by Gooserock on Thu Apr 17, 2014 at 07:57:05 AM PDT

      [ Parent ]

    •  LOL - taxes are for the unwashed like you and I (9+ / 0-)

      Mr. de Castro's hard earned income is probably safely stashed in some offshore tax haven.

      “In the beginning there was nothing, which exploded.” Terry Pratchett

      by 420 forever on Thu Apr 17, 2014 at 07:59:51 AM PDT

      [ Parent ]

    •  Oh the humanity! - How in the world (2+ / 0-)
      Recommended by:
      YouKnowMe, hbk

      will he ever get by on $33 million after taxes.

      Election Day is Nov 4th, 2014 It's time for the Undo button on the 2010 Election.

      by bear83 on Thu Apr 17, 2014 at 08:04:47 PM PDT

      [ Parent ]

  •  To attract top talent, in sports or in business, (4+ / 0-)
    Recommended by:
    VClib, Shifty18, thestructureguy, Sparhawk

    companies need today to offer competitive contracts. You can be sure that the company did not want to give the guy a $58 million severance package. What they gave him was what they owed him contractually. Other execs watch how companies behave when firing senior people, and if they don't take care of people when showing them the door, it will be harder for them to hire new executives. $58 million is a helluva lot, but keep in mind that if Yahoo hadn't made a poor hiring decision in bringing him on, he would have had a similarly huge contract with some other company and still have a job.

  •  Somebody who was expecting $59 million? (3+ / 0-)
    Recommended by:
    eyo, a2nite, hbk
  •  For $60 million (16+ / 0-)

    They could have hired 60 elite execs at $1 million each and assigned them each to cater to a different ad firm or advertiser!

    Or 600 excellent managers at $100k each.

    Winner take all compensation system is just broken.

    •  Makes you wonder why they didn't. Instead (3+ / 0-)
      Recommended by:
      stringer bell, kurt, llywrch

      they hire a guy they know can't do the job and are throwing away 58 million.  Plus the company suffers and all their riches go down because the stock doesn't preform.  Despite it being a totally negative thing to do they still do it.  Amazing.

      If I comply with non-compliance am I complying? Sarcasm is the ability to insult stupid people without them realizing it.

      by thestructureguy on Thu Apr 17, 2014 at 12:47:27 PM PDT

      [ Parent ]

  •  There are fools... (12+ / 0-)

    ...and there are damned fools.

    And then there are Yahoo shareholders.

  •  The goal of those guys (11+ / 0-)

    is to fail as fast as they can, so that they can get the parachute and be set for life.  

    Staying around to make the company succeed? Why, that's work!  

    The thing about quotes on the internet is you cannot confirm their validity. ~Abraham Lincoln

    by raboof on Thu Apr 17, 2014 at 08:16:10 AM PDT

  •  One more examply of a company being (10+ / 0-)

    plundered by the upper echelons.

    Why would anyone invest in a company run so poorly for the benefit of a few at the top? Who would volunteer their hard earned dollars so that they could be passed off to an overpaid failed executive? This is the real mystery. Why do average Americans "invest" in such smoke and mirrors? Those at the top make money, the brokers make money, the rank and file investors and employees- not so much. From what I can tell, they don't even appear to pay dividends (correct me if I'm wrong).

    If a company doesn't pay dividends then IMO, what someone is "investing" in is simply public perception of a stock and its value and potential future performance so that some day in a misty future you can sell the stock to a 'greater fool" and make a profit.

    “Human kindness has never weakened the stamina or softened the fiber of a free people. A nation does not have to be cruel to be tough.” FDR

    by Phoebe Loosinhouse on Thu Apr 17, 2014 at 08:19:12 AM PDT

  •  I'd leave dKos (6+ / 0-)

    for half that . . .

    Fake Left, Drive Right . . . not my idea of a Democrat . . .

    by Deward Hastings on Thu Apr 17, 2014 at 08:40:02 AM PDT

  •  To answer the question in the title: (0+ / 0-)

    I'd certainly like that severance package!!!

  •  58 Million, are you kidding me (2+ / 0-)
    Recommended by:
    stringer bell, kurt

    That wouldn't make my yacht payments for 3 months, let alone the expenditures on my private jet. And don't even ask about the price of Caviar these days.

  •  No deterrent to bad or underperformance (5+ / 0-)
    Recommended by:
    Chi, nchristine, Thomas Twinnings, kurt, hbk

    When you walk away a multi-millionaire no matter what you do.  It's not like he has to worry about getting another job and bad references!  

    Yes, I know it was all negotiated up front;  but it must be nice to have a job where you can f-up in every way and unless it's criminal you can be assured a cushy life (and as we learned with Wall Street, don't have to worry about the criminal thing too much either).

    •  The Sad Thing Is Other Companies Are Chomping (1+ / 0-)
      Recommended by:
      llywrch

      at the bit to hire him at double and triple his salary and parachute.

      "I think that gay marriage is something that should be between a man and a woman.” - Arnold Schwarzenegger 2003

      by kerplunk on Thu Apr 17, 2014 at 07:16:52 PM PDT

      [ Parent ]

  •  Interesting juxtaposition , imho . (9+ / 0-)
    $58 million severance package
    vs
    South Carolina man faces federal charges after failing to pay $0.89 for drink refill ... Not only did he receive a federal citation and a $525 fine, he also lost his job at the VA hospital...

    Now my question is ,
    which one is more absurd ?

    "please love deeply...openly and genuinely." A. M. H.

    by indycam on Thu Apr 17, 2014 at 10:43:43 AM PDT

  •  Chump change. (1+ / 0-)
    Recommended by:
    stringer bell

    $100 million. Then we can start talking.

    Trust, but verify. - Reagan
    Vote, but Occupy. - commonmass

    When the rich have tripled their share of the income and wealth yet again, Republicans will still blame the poor and 3rd Way Democrats will still negotiate.

    by Words In Action on Thu Apr 17, 2014 at 10:58:59 AM PDT

  •  Hey he's like a world class athlete, or musician. (0+ / 0-)

    Of course he should get a golden parachute!

    The tent got so big it now stands for nothing.

    by Beelzebud on Thu Apr 17, 2014 at 06:58:15 PM PDT

  •  FAIR PAY FAIR PLAY (2+ / 0-)
    Recommended by:
    Thomas Twinnings, YouKnowMe

    What we really need is a situation where the top compensation in an organization is no more than 75 times the bottom compensation in the same organization.

    The fortunes of the top folks should be directly tied to the fortunes of the bottom folks.

  •  Why is he dressed (3+ / 0-)
    Recommended by:
    kerplunk, stringer bell, llywrch

    like he woke up drunk on a yacht?

    I'm never sure if I've forgotten and left the lid up, or if InvisObama™ is using the loo.

    by The Gryffin on Thu Apr 17, 2014 at 07:09:54 PM PDT

  •  He's One Of The World's Top 100 Best And (0+ / 0-)

    brightest.

    You have to pay to get your money's worth.

    If you don't pay outrageous parachutes you're just not a real company.

    I don't get it at all.

    "I think that gay marriage is something that should be between a man and a woman.” - Arnold Schwarzenegger 2003

    by kerplunk on Thu Apr 17, 2014 at 07:13:52 PM PDT

  •  The ugliest & really evil side of capitalism.... (0+ / 0-)

    How can this possibly happen? The Yahoo Board must have the best bennies in the world signing off on this kind of crap.

  •  Boom Bust Cycle (1+ / 0-)
    Recommended by:
    stringer bell

    Reminds me of the biotech boom of the early nineties. Out of college, every bio or chem major was going to work in tech, that was where it was happening, but there were only so many jobs and many job-seekers. Salaries stagnated because of job competition and work going overseas.
    Ultimately, the average tech job in the Bay Area, though decent paying work if you can get it, is burdened by high cost-of-living, that's why the Google buses ship their workers in from the relatively cheap and dense housing of SF.
    It's a boom here--for the few like the poor guy fired above. The rest of us have more in common with the America outside the bubble that is the Bay Area, Manhattan, or DC.

  •  Just for comparison (0+ / 0-)

    A four-star general or admiral at the highest level of military command has a base salary of $253,000.

    Even with the very generous benefits package they're still nowhere near what this guy makes.

    And that's for somebody at the Chief of Staff level, for example Chief of Naval Operations.

    If the pilot's good, see, I mean if he's reeeally sharp, he can barrel that baby in so low... oh you oughta see it sometime. It's a sight. A big plane like a '52... varrrooom! Its jet exhaust... frying chickens in the barnyard!

    by Major Kong on Thu Apr 17, 2014 at 08:09:29 PM PDT

  •  Boycott Yahoo, and all companies that do this (0+ / 0-)

    This type of corporate malfeasance is egregious.

    I don't want to have anything to do with Yahoo.  

    The only real way to stop these kind of travesties is to stop patronizing companies that engage in them.

    easier said than done, to be sure.   but essential.

  •  I have no problem with the pay... (0+ / 0-)

    But I do have a problem with allowing Yahoo the ability to deduct this type of pay for tax purposes. Current tax laws could be used to deny such a deduction as excessive, particularly is this case of such spectacular failure. Further clarifying this power to limit exec compensation would be helpful though. I guarantee that the moment a company is not allowed to deduct this sort of pay unless there is rock solid and direct proof that the person receiving it provided equal or more value to the company, these packages would dry up.

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