Yahoo’s De Castro Shown The Door By CEO Mayer

de CastroUSAToday, among others, reported yesterday that Yahoo COO Henrique de Castro “stepped down” from his role, in the wake of Yahoo’s decline from number two to number three (after Google and Facebook) in online advertising. Stepped down is polite.

Yahoo CEO Marissa Mayer bounced him out the door.

In an internal memo, published on Re/Code, Mayer says “I made the difficult decision that our COO, Henrique de Castro, should leave the company. I appreciate Henrique’s contributions and wish him the best in his future endeavors.”

There’s no ambiguity there. None of the usual “wants to spend more time with his family” or “pursue other interests” language appears in Mayer’s missive to employees. Rightly or wrongly de Castro is being shown the door largely because of disappointing ad revenues. Whether he’s a fall guy remains to be seen.

Much of the reporting yesterday when the news broke focused on de Castro’s nearly $60 million compensation package. He won’t collect all (or most of it) because of a four year vesting period. But he will get at least several million for roughly a year of his life spent at Yahoo.

De Castro hired away from Google by Mayer in October 2012 and began in January of this year at Yahoo. He was the first significant hire she made as Yahoo CEO.

At Google de Castro had broad responsibility for Google’s display ad businesses. His LinkedIn profile reads:

Managed Google’s $5bn+ Media, Mobile & Platforms business globally with full P&L ownership, including TV Ads, YouTube Ads, Google Display Network, Mobile Ads, AdMob, AdX and DoubleClick business.

Was it de Castro’s own shortcomings or some sort of “structural” problem with Yahoo’s business (or both) that is ultimately to blame for his termination? Yahoo reports Q4 2013 earnings on January 28.

Postscript: I was entirely wrong about how much de Castro stands to collect. It’s not clear he will get all of it but Forbes reports that his is a $109 million Golden Parachute, one of the largest on record.

Related Topics: Channel: Industry | Yahoo | Yahoo: Advertising | Yahoo: Business Issues


About The Author: is a Contributing Editor at Search Engine Land. He writes a personal blog Screenwerk, about SoLoMo issues and connecting the dots between online and offline. He also posts at Internet2Go, which is focused on the mobile Internet. Follow him @gsterling.

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

Marketing Day:

Get the top marketing stories daily!  


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


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!