The Future of Manish

Yahoo Sets CEO's Salary at $1
Associated Press
June 2, 2006 9:56 p.m.

Yahoo Inc. said Friday it granted Chairman and Chief Executive Terry Semel an option to buy six million company shares as a retention incentive.

The Sunnyvale, Calif., Internet company said in a filing with the Securities and Exchange Commission that it also set Mr. Semel's annual salary at $1 for the 2006-2008 period. Mr. Semel had received a $600,000 salary for at least the past three years, according to Yahoo's most recent proxy.

In addition, Mr. Semel will be eligible for an annual bonus in the form of a fully vested stock option for up to one million shares, the company said.

Yahoo's compensation committee also revised the compensation package of other company executives, including those of Chief Operating Officer Daniel L. Rosensweig and Chief Financial Officer Susan L. Decker who each received 50,000 restricted stock units and a stock option to buy 2.1 million shares.

Both will continue to receive their current $500,000 salary and will be eligible for an annual target cash bonus of up to $1 million for the 2006-2009 period, Yahoo said.

Yahoo shares closed at $31.52 Friday, down 47 cents.