Yahoo's New CEO Imposes Salary Freeze

[HardOCP News]

After signing on as CEO of Yahoo with a salary/stock package reportedly worth $38 million (here), Carol Bartz has imposed a salary freeze for the company’s 13,700 employees.

"Our management decided this was the responsible thing to do," Yahoo spokesman Brad Williams said. Some workers still could get raise this year if they are promoted to other jobs, Williams said.

 

[Deleted member 68403]

Well on the upside, a salary freeze is better than layoffs.

 

[FallenMystic]

Good to see her muddleing through along with the troops....

 

[snowden]

Where's all the whack-jobs coming in to whine about socialism?

So we have a hiring freeze on regular joes. Meanwhile the CEO can take her $33 million dollar salary. How much of that salary is she going to spend (and help the economy with)? Let's be generous and say $3 million over the next year with $30 million sitting around doing nothing (no one is lending). What if they took that $30 million and split it up into pay raises for 10,000 employees? Then 10,000 employees get $3,000 pay raises. And they aren't insanely rich, so they will spend that money on bills, food, and maybe buy something extra for their families. Maybe an HDTV. All that shit helps the economy.

But, oh noz! That's socialism to even suggest we do what's fair and not what our deregulated f-cked up "capitalist" economy on fox news says we should do.

Help AMERICA or watch the super-rich keep helping themselves. At least most Americans can see which is the better way to go.

 

[[RIP]Zeus]

Where's all the whack-jobs coming in to whine about socialism?

So we have a hiring freeze on regular joes. Meanwhile the CEO can take her $33 million dollar salary. How much of that salary is she going to spend (and help the economy with)? Let's be generous and say $3 million over the next year with $30 million sitting around doing nothing (no one is lending). What if they took that $30 million and split it up into pay raises for 10,000 employees? Then 10,000 employees get $3,000 pay raises. And they aren't insanely rich, so they will spend that money on bills, food, and maybe buy something extra for their families. Maybe an HDTV. All that shit helps the economy.

But, oh noz! That's socialism to even suggest we do what's fair and not what our deregulated f-cked up "capitalist" economy on fox news says we should do.

Help AMERICA or watch the super-rich keep helping themselves. At least most Americans can see which is the better way to go.

So by your "standards" if i am "rich" I should share my hard earned money to people who can just as well climb the ladder like this women did?

I think not, and if you don't like this country and how it works, you can go live some where else. No one is forcing you to stay here.

 

[dajet24]

point of this is yahoo being the worthless heap it is shouldnt be paying anyone that kind of money. the fact she is having such a huge pay rate with no track record with the company to jusitify it makes her comments of its the responisble thing to do in freezing peon wages abit BS.


work for 100 grand and when u make the company profitable then give yourself a raise.

 

[computerpro3]

point of this is yahoo being the worthless heap it is shouldnt be paying anyone that kind of money. the fact she is having such a huge pay rate with no track record with the company to jusitify it makes her comments of its the responisble thing to do in freezing peon wages abit BS.


work for 100 grand and when u make the company profitable then give yourself a raise.

They are going to have to pay that much to get a competant CEO. Welcome to the real world. You hire a $500,000 a year CEO at that game and the company will likely run itself even further into the ground.

Don't forget, the CEO of Yahoo isn't some kind of dream job. People need an INCENTIVE to take it. People qualified to run Yahoo could easily get a much more comfortable, safe job for nearly as much at any number of more stable companies.

 

[computerpro3]

^ meant to say "at that level of the game"

 

[computerpro3]

Actually, I just read the article (as some of you guys posting above should do). She's only getting $1 million a year as guaranteed salary. That is CHEAP. The rest of her money is tied to stock options. In other words, if the company performs well, then she gets her $38 million. If it tanks, she's screwed right along with the employees.

Nice try turning the article into a rant against capitalism, but fail.

 

[OregonLAN]

Most of her pay was stock options, but yea I think it's ridiculous to offer anyone 33 million dollars worth of compensation and then turn around and “freeze” pay raises company wide. If anything, I would hate to work for Yahoo as the moral has to be at an all time low. Yes, they still have jobs, but it doesn’t guarantee them that they will have them next month.

 

[stevedave]

no CEO for a company not doing so well should be willing to take a 33 million salary. Bad CEO bad.

 

[computerpro3]

no CEO for a company not doing so well should be willing to take a 33 million salary. Bad CEO bad.

For the 10th time, she doesn't have a $33 million dollar salary. It's $1 million with stock options, and she can't even excersises the options until the stock rises in value!

 

[a123456]

If you actually read the original article, the salary was "only" 1M, not 30M+. The rest is probably long-vesting stock options, which I'm sure a lot of the employees already have and don't really want more of, even if they're probably underwater by now.

I'm mixed about the nominal pay of certain jobs but basically it's down to supply and demand. It's not that different from jobs like professional athletes. They're probably a bit overpaid but the pay will eventually attract the talent even if there are missteps along the way. I think executives should be paid more since usually they should/do have extra skills that make them deserve the higher pay but some of the packages are really high. And not all execs know what they're doing. Like Marbury making 21M this season?

 

[Chombo]

Where's all the whack-jobs coming in to whine about socialism?.

So we have a hiring freeze on regular joes. Meanwhile the CEO can take her $33 million dollar salary. How much of that salary is she going to spend (and help the economy with)? Let's be generous and say $3 million over the next year with $30 million sitting around doing nothing (no one is lending). What if they took that $30 million and split it up into pay raises for 10,000 employees? Then 10,000 employees get $3,000 pay raises. And they aren't insanely rich, so they will spend that money on bills, food, and maybe buy something extra for their families. Maybe an HDTV. All that shit helps the economy.

But, oh noz! That's socialism to even suggest we do what's fair and not what our deregulated f-cked up "capitalist" economy on fox news says we should do.

Help AMERICA or watch the super-rich keep helping themselves. At least most Americans can see which is the better way to go.

Looks like you answered your own question.

Hypothetical question for you. Lets say above mentioned CEO gets $38 million, and does "nothing" with it. If we can assume that means sitting in a bank account getting 0% interest, that money is getting loaned out somewhere.

Lets assume that instead that CEO likes to blow money on expensive crap. Lets say a new Leer Jet. How many people does that employ? Or we can give $3k to a bunch of people to buy HDTVs made in Korea. Just a thought.

 

[snowden]

So by your "standards" if i am "rich" I should share my hard earned money to people who can just as well climb the ladder like this women did?

I think not, and if you don't like this country and how it works, you can go live some where else. No one is forcing you to stay here.

Actually I worked my ass off to make sure my political party has taken over MY country. And if you didn't understand it then try watching Obama's Inaugural Address again. He is selling socialism to the masses, just like FDR.

Nobody said if you are rich you have to give up money. What I say is if you have $50 million dollars invested into a company then you need to pay your fair share of taxes. I pay taxes, my neighbors pay taxes, and if you are a freakin millionaire you need to pay taxes too. And I can make a very good argument that you should pay higher tax rates then I do.

If you have $50 million+ then a lot of your money is going to be tied up in various businesses. Stocks, bonds, etc... Those businesses are able to function because the government builds roads, bridges, electrical grids, water pipes, functioning courts, etc... That shit costs money, and corporations use all that stuff WAY WAY more then your regular joe. I mean just look at the civil courts, how much of the civil court system is used by corporations and the super rich compared to folks like you and me?

There are actual real studies on this stuff to. Maybe you folks can read up on 'em instead of listening to your angry talk radio.

 

[Chombo]

If you have $50 million+ then a lot of your money is going to be tied up in various businesses. Stocks, bonds, etc... Those businesses are able to function because the government builds roads, bridges, electrical grids, water pipes, functioning courts, etc... That shit costs money, and corporations use all that stuff WAY WAY more then your regular joe. I mean just look at the civil courts, how much of the civil court system is used by corporations and the super rich compared to folks like you and me?

There are actual real studies on this stuff to. Maybe you folks can read up on 'em instead of listening to your angry talk radio.

Question, in your neck of the woods how many new bridges, roads, electrical grids and water pipes were paid for by the Federal government? Its a trick question, you may need to look it up.

 

[computerpro3]

Question, in your neck of the woods how many new bridges, roads, electrical grids and water pipes were paid for by the Federal government? Its a trick question, you may need to look it up.

I think it's a trick question because Utah doesn't have anything civilized like bridges and electrical grids, right?

 

[AMD_Man]

I find the whole argument about $3000 for each employee so that they can buy HDTVs and stimulate the economy laughable.

1. When did owning an HDTV become a right of every American citizen? Do those 10,000 all really even need or want one? And yes, many (most?) HDTV manufacturers are foreign companies so it's not clear how much if would help the American economy if 10,000 people bought Samsung or Sony TVs tomorrow.

2. If you want to stimulate the American economy, finance a GM/Ford/Chrysler car with that $3000 as down payment or put that $3000 towards a down payment on a house (and actually MAKE SURE YOU CAN AFFORD paying the mortgage so you don't go bankrupt!!!)

 

[Chombo]

I think it's a trick question because Utah doesn't have anything civilized like bridges and electrical grids, right?

That and its provided by Arizona and Nevada.

 

[Kristofff]

So by your "standards" if i am "rich" I should share my hard earned money to people who can just as well climb the ladder like this women did?

I think not, and if you don't like this country and how it works, you can go live some where else. No one is forcing you to stay here.

Only certain people can climb the ladder like her and they started off rich. Don't use that bullshit rhetoric that anyone can do anything. Only certain people can do anything, with a one or two getting lucky and meeting the right people.

Actually, I just read the article (as some of you guys posting above should do). She's only getting $1 million a year as guaranteed salary. That is CHEAP. The rest of her money is tied to stock options. In other words, if the company performs well, then she gets her $38 million. If it tanks, she's screwed right along with the employees.

Nice try turning the article into a rant against capitalism, but fail.

Apparently you didn't read the article...

Yahoo said her package includes a maximum annual bonus of $4 million and a 2009 equity grant valued at about $8 million, expected to be made in February. She also gets $10 million in cash and restricted shares to "make up" for equity grants and benefits that she had at Autodesk Inc., a software concern where she had previously been CEO.

She is getting a 1 million dollar salary, a 4 million dollar annual bonus, an equity grant of 8 million dollars, and a 10 million dollar cash and stock bonus for leaving Autodesk to work for Yahoo.

I dunno about your math, but mine calculates that as 23 million dollars. With the incentive stocks valued at 15 million dollars, her total package would be 38 million dollars.

Presenting things one don't know about as factual and genius makes one look like an idiot.

For the 10th time, she doesn't have a $33 million dollar salary. It's $1 million with stock options, and she can't even excersises the options until the stock rises in value!

Oh look, you're doing it again.

 

[Kristofff]

I find the whole argument about $3000 for each employee so that they can buy HDTVs and stimulate the economy laughable.

1. When did owning an HDTV become a right of every American citizen? Do those 10,000 all really even need or want one? And yes, many (most?) HDTV manufacturers are foreign companies so it's not clear how much if would help the American economy if 10,000 people bought Samsung or Sony TVs tomorrow.

2. If you want to stimulate the American economy, finance a GM/Ford/Chrysler car with that $3000 as down payment or put that $3000 towards a down payment on a house (and actually MAKE SURE YOU CAN AFFORD paying the mortgage so you don't go bankrupt!!!)

He didn't say it was a right. He meant that giving people spending money will lead to them spending money, as opposed to it all sitting in a savings account for corrupt banks to play with or being invested into a corrupt stock market, both of which have failed and robbed the American people.

 

[MrGuvernment]

$30 million sitting around doing nothing (no one is lending).

And you dont think the bank it is going to be sitting in will be using that money

 

[Kristofff]

And you dont think the bank it is going to be sitting in will be using that money

Over 300 billion dollars was appropriated for the banking industry in order to make more loans available, Guess what didn't happen. (Hint: its not that people didn't want more loans.)

 

[computerpro3]

Apparently you didn't read the article...

And apparently, you can't read period.

This is what I said:

She's only getting $1 million a year as guaranteed salary.

Do you know what salary is?

Bonuses do not count towards salary. Stock options do not count towards salary. A one-time equity grant does not count towards yearly salary. Her base salary is $1 million a year, like it or not. Hell, her bonuses aren't even guaranteed - the 4 million was maximum bonus, if you actually bothered to read critically.

I dunno about your math, but mine calculates that as 23 million dollars. With the incentive stocks valued at 15 million dollars, her total package would be 38 million dollars.

So you think she's getting 23 million a year in salary? If so, you are just hilariously wrong.

Presenting things one don't know about as factual and genius makes one look like an idiot.

I know, keep posting, it's great entertainment.

 

[Kristofff]

And apparently, you can't read period.

This is what I said:



Do you know what salary is?

Bonuses do not count towards salary. Stock options do not count towards salary. A one-time equity grant does not count towards yearly salary. Her base salary is $1 million a year, like it or not. Hell, her bonuses aren't even guaranteed - the 4 million was maximum bonus, if you actually bothered to read critically.



So you think she's getting 23 million a year in salary? If so, you are just hilariously wrong.



I know, keep posting, it's great entertainment.

Yes lets ignore the fact that she IS going to get most of that 4 million dollar yearly bonus and the fact that she IS going to get that 10 million dollar sign on bonus and the fact that she IS going to get an 8 million dollar equity grant and pretend the only thing that matters is the 1 million dollar "salary" as if the rest is besides the point.

She's getting 23 million dollars for her pay this year and almost 4 million a year after that, before raises and more stock bonuses. End of story. Now, stop back tracking because you interpreted the article as saying "the salary was "only" 1M, not 30M+. The rest is probably long-vesting stock options" and are trying to save face now

If you still don't understand how lacking your intelligence is, apply your "salary" argument to all those CEO's with a "1 dollar a year salary".

 

[computerpro3]

Yes lets ignore the fact that she IS going to get most of that 4 million dollar yearly bonus and the fact that she IS going to get that 10 million dollar sign on bonus and the fact that she IS going to get an 8 million dollar equity grant and pretend the only thing that matters is the 1 million dollar "salary" as if the rest is besides the point.

She's getting 23 million dollars for her pay this year and almost 4 million a year after that, before raises and more stock bonuses. End of story. Now, stop back tracking because you interpreted the article as saying "the salary was "only" 1M, not 30M+. The rest is probably long-vesting stock options" and are trying to save face now

If you still don't understand how lacking your intelligence is, apply your "salary" argument to all those CEO's with a "1 dollar a year salary".

Speaking of intelligence, you didn't even quote the right person. Fail.

 

[Rizen]

Who gives a shit how much money she makes? If running a company is so easy and you are entitled to money just like her, than why are you here posting on the HardForums instead of out starting a business?

I don't even make 5% of her yearly guaranteed salary but I am not going to be suggesting that people redistribute wealth to compensate me for it. Instead I go to work every day and bust my ass so that hopefully by the time I am her age I will be making a better living for myself. I don't run myself up on credit and loans I can't pay off, I invest for my future and I don't live outside of my means. People are not entitled to anything.

I can understand the complaint about paying her so much money to run such a shitty company though

 

[computerpro3]

To more directly address your points, I will try to explain this very clearly and slowly.

The signing bonus and equity grants are one time deals. That means she is only getting them once. Another way of saying this is that next year she won't get them. For a third explanation, in case those first two aren't clear, those are not part of her yearly salary.

The equity grant and signing bonus were literally given because she is taking a pay cut to go to yahoo. Without the grant and bonus, she wouldn't sign. No CEO worth their salt would. Why would you ever take a pay cut to go to a failing company without one? The equity grant and singning bonus, quoted straight from the article, were given so she wouldn't be worse off initially with Yahoo than she was with her previous company.

This year she will make a lot of money. But next year, and the year after that, etc, etc, her income will be much closer to her $1 million a year, with the possible bonus of up to $4 million (and do you really think she will receive the highest tier of performance based incentives the way Yahoo is going?).

The way that the rest of the world looks at this, that means her salary is $1 million a year with a signing bonus and and equity grant. The way you seem to look at it is that her salary is $23 million a year.

To put the signing bonus in perspective, my father is the COO and EVP of a large healthcare business and said that you couldn't pay him $10 million a year to run yahoo. Getting a competent CEO for Yahoo's price is a very very fair deal for both the shareholders and the company.

 

[anime4u]

Well after getting 38 millions dollars worth of cash and benefits, no wonder no one else could be paid!

 

[computerpro3]

Well after getting 38 millions dollars worth of cash and benefits, no wonder no one else could be paid!

Speaking of greed, your computer is quite the indulgence. If you sold it and bought a $399 dell, you could provide 10-15 basic PIII systems for poor people.

Just unadulterated greed, pure and simple. Disgusting.

 

[TheCommander]

Actually I worked my ass off to make sure my political party has taken over MY country. And if you didn't understand it then try watching Obama's Inaugural Address again. He is selling socialism to the masses, just like FDR.

.

Nice to know you supported another corrupt party. Republicans and Democrats are killing this country. Both parties cater to special interest groups, waste money needlessly, and do not care about the common man.

 

[Kristofff]

Speaking of intelligence, you didn't even quote the right person. Fail.

An understandable mistake since you said the exact same thing the post above it.

For the 10th time, she doesn't have a $33 million dollar salary. It's $1 million with stock options, and she can't even excersises the options until the stock rises in value!

Oh, and you said it again 3 posts before that:

She's only getting $1 million a year as guaranteed salary. That is CHEAP. The rest of her money is tied to stock options.

Who gives a shit how much money she makes? If running a company is so easy and you are entitled to money just like her, than why are you here posting on the HardForums instead of out starting a business?

I don't even make 5% of her yearly guaranteed salary but I am not going to be suggesting that people redistribute wealth to compensate me for it. Instead I go to work every day and bust my ass so that hopefully by the time I am her age I will be making a better living for myself. I don't run myself up on credit and loans I can't pay off, I invest for my future and I don't live outside of my means. People are not entitled to anything.

I can understand the complaint about paying her so much money to run such a shitty company though

There is a difference between being the CEO of an existing and successful company and starting your own multimillion dollar company on your own. And, anyone can start a small business if they happen to have the money laying around, few people are privileged enough to have the upbringing and connections to be a CEO.

But I wouldn't expect you to understand since you are so proud of being poor.

To more directly address your points, I will try to explain this very clearly and slowly.

The signing bonus and equity grants are one time deals. That means she is only getting them once. Another way of saying this is that next year she won't get them. For a third explanation, in case those first two aren't clear, those are not part of her yearly salary.

The equity grant and signing bonus were literally given because she is taking a pay cut to go to yahoo. Without the grant and bonus, she wouldn't sign. No CEO worth their salt would. Why would you ever take a pay cut to go to a failing company without one? The equity grant and singning bonus, quoted straight from the article, were given so she wouldn't be worse off initially with Yahoo than she was with her previous company.

This year she will make a lot of money. But next year, and the year after that, etc, etc, her income will be much closer to her $1 million a year, with the possible bonus of up to $4 million (and do you really think she will receive the highest tier of performance based incentives the way Yahoo is going?).

The way that the rest of the world looks at this, that means her salary is $1 million a year with a signing bonus and and equity grant. The way you seem to look at it is that her salary is $23 million a year.

To put the signing bonus in perspective, my father is the COO and EVP of a large healthcare business and said that you couldn't pay him $10 million a year to run yahoo. Getting a competent CEO for Yahoo's price is a very very fair deal for both the shareholders and the company.

That's a lot of words to backpedal and pretend she is only making 1 million a year and that none of the other money or guaranteed bonuses exist. Like I said before, apply your stupid argument to those "1 dollar a year" CEO's and tell me how much money they aren't making because its not labeled "salary".

Speaking of greed, your computer is quite the indulgence. If you sold it and bought a $399 dell, you could provide 10-15 basic PIII systems for poor people.

Just unadulterated greed, pure and simple. Disgusting.

Awwww did the trust fund baby get upset that a rich person got complained about?

 

[G-fan]

Just another example of the rich getting richer,and the workers paying for it.No one is worth that kind of money,and in the end,Yahoo will be no better off.

 

[Monkey God]

So much hate for someone making more money than them. Start your own company, or get yourself into a good college, get an MBA in business, meet some people and network, develop some skills, and then you can be on top. Oh wait, thats hard work, takes time and effort, and you cant be bothered. So go back your Best Buy "tech" job and spend your free time smoking weed and railing about the evils of capitalism on the intarwebs.

 

[MrGuvernment]

Over 300 billion dollars was appropriated for the banking industry in order to make more loans available, Guess what didn't happen. (Hint: its not that people didn't want more loans.)

i just saw that on CNN last night!, they used it to pay out bonuses and crap apparrently, or at least place like marly linch did, unreal.

 

[Moose&Squirrel]

Actually, I just read the article (as some of you guys posting above should do). She's only getting $1 million a year as guaranteed salary. That is CHEAP. The rest of her money is tied to stock options. In other words, if the company performs well, then she gets her $38 million. If it tanks, she's screwed right along with the employees.

Nice try turning the article into a rant against capitalism, but fail.

Thats a pretty strong incentive for her to create short term gain versus long term stability for her company and shareholders.

Hey that reminds me of something thats been happening recently. Oh wait...

 

[computerpro3]

Thats a pretty strong incentive for her to create short term gain versus long term stability for her company and shareholders.

Hey that reminds me of something thats been happening recently. Oh wait...

True, but if the company tanks in a few years she won't be getting her 4 million a year bonuses.

 

[Kristofff]

So much hate for someone making more money than them. Start your own company, or get yourself into a good college, get an MBA in business, meet some people and network, develop some skills, and then you can be on top. Oh wait, thats hard work, takes time and effort, and you cant be bothered. So go back your Best Buy "tech" job and spend your free time smoking weed and railing about the evils of capitalism on the intarwebs.

You forgot the part where your parents are rich and send you to Harvard. Its the most important part. No one puts themselves through school and becomes a CEO making millions. It is cute though, that you think people can easily do it.

True, but if the company tanks in a few years she won't be getting her 4 million a year bonuses.

Good thing she already got her 28 million! That's like working for 28 years at a 1 million dollar a year salary, AMIRITE?!

Are you done trying to convince everyone that she isn't making a shit ton of money?

 

[computerpro3]

You forgot the part where your parents are rich and send you to Harvard. Its the most important part. No one puts themselves through school and becomes a CEO making millions. It is cute though, that you think people can easily do it.

You see, this is the problem with people like you. You just give up.

My father tried putting himself through school, and eventually had to drop out due to financial constraints (in other words, he got married and he put my mom through school instead of himself). He started several companies, most of them failing. He had a few moderate successes, but kept getting screwed over again and again. He lost his house, and was supporting two children and wife with no college degree working 3 shitty jobs.

Fast forwards 10 years and he is COO and EVP of the worlds largest digital medical archiving company.

Nobody said anything about it being easy. Again, that's the problem with people like you. It takes hard work and sacrifice. But it can be done, and it has been done. Even by people with no degree at all.

 

[Kristofff]

i just saw that on CNN last night!, they used it to pay out bonuses and crap apparrently, or at least place like marly linch did, unreal.

That's what happens when you pretend that giving money to businesses to stimulate the "free market" economy is a good idea.

The worse part is that people (stupid dumbass republicans who wont think for themselves) will claim (and for fucks sake have claimed on national "conservative" talk radio shows) that spending 1.2 million dollars to redecorate an office, including spending 35 thousand dollars on a commode (a fancy drawer), and 1200 dollars on a trashcan made of parchment is actually a good thing since people got paid to redecorate the office. Yea, never mind the failing fucking economy and need for loaning confidence, lets redecorate and buy fancy foreign antiques! Ugh...

http://blogs.wsj.com/deals/2009/01/23/deal-journal-explainer-the-35000-commode-outrage/?mod=yahoo_hs
http://www.theglobeandmail.com/servlet/story/LAC.20090123.RTHAIN23/TPStory/Business
http://en.wikipedia.org/wiki/John_Thain

Mr. Thain signed off on area rugs worth $131,000, a $68,000 antique credenza and guest chairs costing $87,000.

While shocking to Merrill investors, the totals pale in comparison to the money the company lost under Mr. Thain - $27-billion in 2008.

Gotta pay those CEOs so much cause their jobs are so horrible and difficult, right? Please... just shut the hell up. They have no idea how much a dollar is worth.