
Yahoo appoints Google's Henrique de Castro as COO - ximeng
http://www.bbc.co.uk/news/business-19957779
======
ximeng
"According to a regulatory filing, de Castro will receive an annual base
salary of $600,000 and a one-time retention equity award comprising $US18
million in restricted stock units and $US18 million in performance-based stock
options. He will get a $1 million bonus for leaving Google and restricted
stock with a target value of $US20 million."

60 million USD package according to
[http://www.theaustralian.com.au/business/world/yahoo-to-
pay-...](http://www.theaustralian.com.au/business/world/yahoo-to-pay-new-coo-
henrique-de-castro-us60m/story-e6frg90o-1226497025098) (paywall unless you
come via Google)

Better article at allthingsd:

[http://allthingsd.com/20121015/yahoo-confirms-hiring-of-
goog...](http://allthingsd.com/20121015/yahoo-confirms-hiring-of-googles-de-
castro-as-coo-like-i-said/)

~~~
001sky
interesting => package is 100x reported base salary

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confluence
$60 million dollars for a sales exec! WTF!

Am I the only one that thinks this is completely ridiculous?

Yahoo! needs products and you could've hired 250 highly paid full time
developers for 1 year for that cash. Hell - you could've pouched a nice sliver
of Google.

I mean doesn't Yahoo! suck at engineering and not sales as compared to Google?
They're second in search and still pulling billions - I thought all they
needed were more products?

~~~
001sky
COO is slightly different, if that is in fact his role. at $20B mkt cap, $60MM
is like a 0.03% stake in the company. Basically a rounding error. In the last
10 years, people learned that value destruction is the same as creation, when
it comes to leverage in these scenarios. If you don't pay them $XYZ, they will
destroy value or sit idly by as entropy does it for them. The mathematical
equivalence of marginal productivity (what they teach in school) and marginal
malevolence (street smarts) is elegant in its simplicity. That's how the game
is played. One of the downsides of "maximizing shareholder value" as your
guiding principle.[1]

With that in mind, look at a comp for COO pay:

Exec Comp Consuultant > _American businesswoman and the Chief Operating
Officer of Facebook, Sheryl Sandberg, has an estimated net worth of $1.6
billion_

Not justifying it, just pointing out the facts.

______

[1] A Mature company is completely different dynamic than a (0,1) innovation
scenario/startup, IMHO. And there are more and less sophisticated ways to
understand even "Maximizing X value" at the Board Level, stage agnostic.

~~~
guelo
Net worth after an IPO is not the same as a compensation package.

~~~
001sky
Apologise, as I was not more precise in my data. But, in this case, most of
Sandberg's net worth was from her compensation package at FB as COO. [1] It
was really more for order of magnitude: $60 vs $1,500. You could cut that in
half and divide by ten and still be 25% higher. When you think like this, the
fact that packgage $60M is 100x $0.6 salary gets lost in the shuffle. =D

_________

[1] In 2009, FB was $10-15B company. She had some money, though, from google
as well presumably.

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manaskarekar
Reminds me of this old discussion : "Why do business analysts and PMs get
higher salaries than programmers?"

<http://news.ycombinator.com/item?id=4138086>

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franze
i'm wondering what yahoo will be in 5 years? are there any cases where an
established big company / big player in decline re-invented itself
successfully? (ok, any company other than Apple ...)

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seivan
No chance. Why would a developer want to feel his contribution is less than of
a sales exec.... Good luck building great products Yahoo.

~~~
freehunter
At which companies are developers paid more than executives?

