$1 Per Year Is The Hot, New Online Executive Salary

2 comments

Today, Yahoo! Inc., announced that CEO Terry Semel has joined the top 3 guys at Google in having his annual salary reduced to a mere $1 per year.

Before you bring out the hankies to wipe away any tears you might want to shed for Semel, rest assured that the stock options and grants that he is now eligible for should more than compensate him for the reduction of his salary from $600,000 to a measly dollar. Last year, for example, Semel made $173.6 million on the stock options he chose to exercise and that was on top of his $600,000 salary.

What’s up with this? Just another way for search companies to incentize their execs by making what they take home to their bank accounts dependent upon the performance of the corporation as a whole. Smart move … as long as they continue to make money that is. Don’t know that Semel will be too happy a camper if Yahoo! were to have an off year (not to mention Sergey, Larry and Eric at Google who also earn a buck a year). Anyone think Microsoft may hop on this bandwagon?

About the Author

Frances Krug has worked in market research since graduating from UCLA with an MA and CPhil in Latin American history. As an editor and online content provider for the last 7 years, she currently is Associate Editor at iNET Interactive, where she also directs Search Marketing Standard's email marketing program.

Add Your Comments

  • (will not be published)

2 Comments

  1. It's a silly bandwagon once you figure in the stock option exercise. Seems like a cheap, stupid PR ploy to me.

  2. Frances

    I agree, John. Although it may have been a cheap ploy, it sure got some attention. When the Google Three took a pay cut, people just kind of wrote it off as a "typical" Google weirdo thing. Yahoo! is generally considered a much more conservative outfit. Like you, I think they were just looking for a little publicity, but I wouldn't put it past Microsoft to follow (although there might be chair throwing happening if Bill brings the subject up LOL).