Yahoo Pay Inequity
April 19, 2017
Former Yahoo CEO Marissa Mayer made a considerable salary, especially considering she came to power during an economic downturn. Her replacement Thomas McInerney, however, will be making double her salary. Fortune reports on the income differences in: “Yahoo’s New Male CEO Will Make Double Marissa Mayer’s Salary.” Pay inequity remains a big topic in today’s job market and this rises to the top as another example of a professional male receiving more money than a woman who held the same position.
Since Yahoo has sold its technology and advertising business to Verizon, it only consists of Alibaba stock, Yahoo Japan, and other miscellaneous investments. One can assume that McInerney will have a much easier job than Mayer did. McInerney is the former IAC CEO and his base salary will be $2 million, over Mayer’s $1 million. He will also be getting more income from Yahoo:
What’s more, Yahoo actually expects to pay McInerney $4 million in his first year working at the company, assuming he earns his target bonus, which is equal to his base salary, according to the new disclosures. That’s 25% more than the $3 million the company is paying Mayer for a salary and cash bonus this year. On top of that, McInerney will also be eligible for grants of long-term incentive rewards of up to $24 million, depending on achievement of performance goals. If he were to receive the maximum amount, it would also be twice as much as Mayer’s long-term incentive grant in 2015, the last full year before the Verizon deal was announced.
McInerney will be paid to run the Yahoo equivalent of a mutual fund. Yahoo will also not be buying new stock, instead, they will focus on managing their Alibaba stock and Yahoo Japan. Those two investments basically run themselves.
If you ask me, it sounds like once again a woman cleans up a mess, makes it manageable, and a man comes in to take the credit and more pay.
Whitney Grace, April 19, 2017