Yahoo hires Google's Henrique de Castro with $58m pay package
- 16 October 2012
- From the section Business
Yahoo has appointed a Google executive as its next chief operating officer, paying him a hefty pay package worth about $58m (£36m) over four years.
Henrique de Castro had worked for Yahoo's new chief executive, Marissa Mayer, at Google. He will oversee sales and operations, Yahoo said.
Mr de Castro will get an annual salary of $600,000 as well as $36m in stock options.
Yahoo has been trying to rebuild itself after falling behind its rivals.
Yahoo was one of the pioneers in internet search and email and continues to remain one of the biggest names in the industry. It has been losing ground as it has not been able to keep with the likes of Google in the search engine area.
"This is a pivotal point in Yahoo's history, and I believe strongly in the opportunity ahead," Mr de Castro said.
Yahoo's share of US online advertising revenues fell to 9.5% last year, down from 15.7% in 2009.
Mr de Castro will be eligible for an annual bonus of up to 90% of his $600,000 salary, according to Yahoo's filing with the US Securities and Exchange Commission.
He will also receive a cash bonus of $1m within one week of joining Yahoo and will be given restricted stock units and performance-based stock options totalling $36m over four years.
That compares to Ms Mayer, whose remuneration package could top $70m.
Ms Mayer's basic salary is $1m a year, but shares and share options, along with other potential rewards, could make it far more lucrative.
She was appointed in July and is the firm's third chief executive in the space of a year.