Disgraced Yahoo CEO Thompson Gets No Severance But Still Departs With $7 Million

How does earning $56K a day sound? That’s what former Yahoo CEO Scott Thompson just walked away with, after 124 total days (and fewer business days) on the job and a departure marred by a resume scandal.

Though Thompson isn’t receiving a severance payment, he gets to keep the “make-whole” cash bonus and restricted stock units that had vested, which were valued at $7 million when he joined Yahoo in January.

This is according to a Securities and Exchange Commission filing first reported on by AllThingsD.

From the filing:

Yahoo! and Mr. Thompson agreed to terminate all other agreements between them, including Mr. Thompson’s offer letter, all outstanding but not fully vested equity awards and Yahoo!’s other plans and arrangements for the benefit of employees, with no severance compensation. However, in accordance with the terms of his offer letter, Mr. Thompson retained the make-whole cash bonus previously paid to him under his offer letter and the make-whole restricted stock units that had been granted to him pursuant to his offer letter and that had already vested.

According to the hiring filing, Thompson’s original agreement with Yahoo called for him to be paid a severance fee if “…Mr. Thompson’s employment is terminated by the Company without cause or by Mr. Thompson for good reason….” This indicates Thompson’s departure was considered to be with cause — the resume flap that began when activist investor Third Point publicly revealed that Thompson’s public biography, which listed him as having a computer science degree, was incorrect.

Though Thompson denied actively fudging the qualifications, he personally certified a SEC filing that listed the incorrect information. In a radio interview, he didn’t deny having the degree despite being specifically asked about it.

As for Ross Levinsohn, who was formerly EVP of Americas, his compensation won’t change as a result of being appointed interim CEO.

Related Topics: Channel: Industry | Yahoo: Business Issues

Sponsored


About The Author: is executive features editor of Marketing Land and Search Engine Land. She’s a well-respected authority on digital marketing, having reported on, written about and worked in digital media and marketing for more than 10 years. She is a previous managing editor of ClickZ and has worked on the other side of digital publishing, helping independent publishers monetize their sites in her work at Federated Media Publishing.

Connect with the author via: Email | Twitter | Google+ | LinkedIn



Marketing Day:

Get the top marketing stories daily!  

Share

Other ways to share:
 

Read before commenting! We welcome constructive comments and allow any that meet our common sense criteria. This means being respectful and polite to others. It means providing helpful information that contributes to a story or discussion. It means leaving links only that substantially add further to a discussion. Comments using foul language, being disrespectful to others or otherwise violating what we believe are common sense standards of discussion will be deleted. You can read more about our comments policy here.

Comments are closed.

Get Our News, Everywhere!

Daily Email:

Follow Marketing Land on Twitter @marketingland Like Marketing Land on Facebook Follow Marketing Land on Google+ Subscribe to Our Feed! Join our LinkedIn Group Check out our Tumblr! See us on Pinterest

 
 

Click to watch SMX conference video

Join us at one of our SMX or MarTech events:

United States

Europe

Australia & China

Learn more about: SMX | MarTech


Free Daily Marketing News!

Marketing Day is a once-per-day newsletter update - sign up below and get the news delivered to you!