Yahoo spends $58 million to fire its chief operating officer

Washington Post:

$58 million for 15 months of work.

That’s what Yahoo’s chief operating officer Henrique De Castro got in severance pay when he was sent packing on Jan. 16, according to a Securities and Exchange Commission filing made public on Wednesday.

Ouch.

De Castro’s severance package, which included $1 million in cash plus equity, was valued at $17 million on Oct. 15, 2012, when he signed his offer letter.

That figure more than tripled during Castro’s brief time at the company when Yahoo’s share prices rose, thanks to its 24 percent stake in Chinese Internet giant Alibaba.

That is some good timing.



  • Billy Razzle

    They can fire me for half of that.

  • Craig Treleaven

    See p. 83 at http://www.sec.gov/Archives/edgar/data/1011006/000119312514146035/d710905dpre14a.htm

    Yahoo’s stock price went from $16 to $40 during his employment. When he joined Yahoo it was in the toilet and he negotiated a severance clause that put him even with what he was leaving. It ballooned because Yahoo’s shares ballooned.

    Interesting, though, that he had a lot of incentive to get fired!