Lion of the Blogosphere

Value transference in action

http://money.cnn.com/2016/07/25/technology/marissa-mayer-pay/index.html

Yahoo CEO Marissa Mayers to receive $217 million exit package after running the company into the ground.

Written by Lion of the Blogosphere

July 25, 2016 at 5:36 PM

Posted in Economics

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51 Responses

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  1. Told ya so!

    CEOs of public companies are VT parasites.

    JS

    July 25, 2016 at 5:51 PM

  2. Should be shot. Power to the people!

    Yakov

    July 25, 2016 at 6:32 PM

  3. Who are the morons that buy this POS stock? If you’re putting you’re money in tech you are gambling not investing. If only people who actually understood tech companies and balance sheets and income statements and cash flow statements put their money in this stuff then these CEO’s wouldn’t have billions of capital to steal from shareholders.

    Andrew E.

    July 25, 2016 at 6:32 PM

    • What do you mean by tech?

      Do you mean companies like Facebook twitter?

      Do you mean companies that make transistors and sensors?

      Do you mean companies that make robots?

      Do you mean companies that make specialized hardware?

      I speculate as a side hobby, focusing on tech companies since I follow tech and read science journals on new discoveries or innovations.

      Don’t lump all tech companies with the swj companies like Facebook, twitter , snap chat

      Hbd investor

      July 26, 2016 at 10:44 AM

      • Well, I was referring to the SJW stuff. But my larger point is that nobody should be putting money in the stock market unless they personally understand the industry, have the time to follow the company, and have the ability to read the financial statements.

        Andrew E.

        July 26, 2016 at 5:19 PM

  4. OT – the Democratic Party continues descent into madness as it has less whites to moderate its message:

    Black Georgia democrat likens Israeli settlements to “termites”:

    http://politics.blog.ajc.com/2016/07/25/georgia-congressman-on-jewish-west-bank-settlers-like-termites/?ref=cbTopWidget

    Black Georgia democrat claims that Israel coordinated the recent terror attacks in France and Germany and references the alleged “Dancing Israelis” who supposedly celebrated 9/11 in the streets:

    http://politics.blog.ajc.com/2016/07/25/ex-georgia-lawmaker-ties-israel-to-deadly-terror-attacks/

    Camlost

    July 25, 2016 at 6:32 PM

    • America is really becoming a Brazil, and not a Mexico. Mestizo Hispanics aren’t used as a propaganda for race mixing with Whites.

      Many of these commercials that one sees on TV sends out subliminal messages encouraging black and White unions.

      This is a greater threat to White America than the south of the border invasion.

      JS

      July 25, 2016 at 7:50 PM

    • Interesting stuff, thanks. I’m actually beginning to get some weird sympathy for Hillary. Corrupt she is, but she’s kind of the last gasp of sanity in the Democratic Party. Apres her, le deluge. He’s the future.

      I’d forgotten about McKinney. Too bad she’s not speaking at the convention.

      gothamette

      July 25, 2016 at 10:07 PM

  5. Verizon is buying them for $4.8 bn. In 2008, their clever boss Jerry Yang turned down a $43 bn offer from Microsoft. They then raised the bid by, cough, $5bn but were turned down yet again. Epic.

    Glengarry

    July 25, 2016 at 6:33 PM

  6. Not a $217 million exit package. That amount represents her total compensation with Yahoo from the time she was hired four years ago. The exit package would be $57 million.

    Ron S

    July 25, 2016 at 6:34 PM

    • it’s still a joke though. Executive pay is close to a racket.

      ttgy

      July 25, 2016 at 8:58 PM

    • OH well that’s different..

      Mrs Stitch

      July 25, 2016 at 9:31 PM

  7. People say that the CEO’s have to get paid a lot because they take big risks, but they actually take no risks of their own because they are playing with other people’s money and are usually quite well-off when the begin the job.

    It’s one of the most risk free jobs there are and they get paid huge money.

    ttgy

    July 25, 2016 at 6:51 PM

  8. And to think that Microsoft offered $45 billion for Yahoo in 2008 and then-CEO Jerry Yang turned it down, now Verizon is only going to pay around $5 billion.

    Camlost

    July 25, 2016 at 6:59 PM

    • Verizon is buying Yahoo’s core businesses. Yahoo will continue to own a 15% stake in the Chinese company Alibaba and a 35.5 percent stake in Yahoo Japan. The value on those asserts is about $40 billion based on current market prices. The current market capitalization of Yahoo is around $37 billion.

      You could argue that the market value of Yahoo’s core business is -$3 billion, so selling it for $4,8 billion is a good bit of salesmanship.

      mikeca

      July 25, 2016 at 10:31 PM

      • OK, treading water for 8 years definitely sounds better than dropping by 90%.

        Glengarry

        July 26, 2016 at 2:58 PM

  9. If Mayer does resign it will be especially comical after Elizabeth Holmes’ recent fall from grace.

    Camlost

    July 25, 2016 at 7:02 PM

  10. If it weren’t for the sexism, she could have gotten more than the measly quarter of a billion:

    “Marissa Mayer Calls Out Media For Sexist Coverage
    With little left to lose, Yahoo’s CEO gets real.”

    http://www.huffingtonpost.com/entry/marissa-mayer-calls-out-media-for-sexist-coverage_us_57965ea9e4b01180b52fd057

    Tom

    July 25, 2016 at 7:05 PM

    • ridiculous article, but that is what I get for clicking on a HuffPo link.

      She had more than enough time to execute any plans that she had and yahoo selling for a measly $4B is clearly proof that her plans werent working. Every story about yahoo always played up Marissa and the gender card- not the concrete technical plans. How much ink was spilled about her maternity suite? This failure, not having to do with her gender, is of her making.

      Lion of the Turambar

      July 25, 2016 at 8:18 PM

      • There was detailed articles about redesigning the Yahoo! logo…

        anonymous

        July 26, 2016 at 3:49 AM

  11. To be fair, Yahoo was withering before she came on. But the exit package is ridiculous.

    Half Canadian

    July 25, 2016 at 7:35 PM

  12. Not defending the principle, but the $217 million isn’t her “exit package.” According to the article, if she leaves, which she has not announced she will do, she will receive $57m in severance, which they added to $162m in pay she’s received over 4 years to come up with $217m as the total she’ll have received for her stint as CEO.

    Hermes

    July 25, 2016 at 7:54 PM

  13. Of course, it get’s even better, as Marissa Meyer used her position to transfer value to her friends in the form of lucrative positions within the company (ie Henrique de Castro), or by purchasing her friends’ startups at exorbitantly inflated prices.

    She purchased Polyvore, whose CEO was friend and former associate Jess Lee, for probably more than an order of magnitude what it was worth:

    http://www.businessinsider.com/eric-jackson-slams-yahoo-for-polyvore-acquisition-2015-12

    HKC

    July 25, 2016 at 7:59 PM

  14. That suggests a long-short investment strategy: buy stocks of companies run by white men, short diversity

    WRB

    July 25, 2016 at 8:17 PM

    • Dumb idea since there are lot of companies run by white men that are idiot swj’s with no actual tech ability

      And white male founders that randomly stumble onto a idea that everybody has had but simply could not get funding or hype.

      See founders of tinder, snap chat, twitter, myspace

      The “tech bro” stereotype is indeed real and most of them are white males, dumb guy with mediocre background that majors in some entrepreneurship or business crap that doesn’t have the brains for a science or engineering degree, comes up with a dumb idea that everybody has had like 4 square or yelp and use your wealthy parents and friends to pay programmers to make the actual product.

      Hbd investor

      July 26, 2016 at 11:03 AM

      • I wish I could upvote this comment a million times. The less successful dolts wind up as project managers, servicing their more successful masters.

        All of his garbage is fueled by cheap capital, i.e. Robbing the middle class through currency debasement to enrich the paper wealthy (or rather keep their worthless stock paper inflated by 1000%) and let them fund these asinine “tech” projects.

        If anyone ever needed a text book example of how government creates misallocation of capital this will be pure gold for the history books. It used to be an ephemeral Miltonian concept, “government crowds out investment”. Now we see it in broad daylight. Except it’s a private public collusion of crony capitalist monkeys to crowd out investment.

        The correction will be glorious.

        OneMillionWaysToUpvoteInTheWest

        July 26, 2016 at 4:42 PM

  15. As you’ve said Lion, for an individual to have actually earned hundreds of millions/billions of dollars, that individual would need to be a literal superman capable of doing the labor of thousands of people.

    It’s generally speaking totally bogus for a CEO to be earning more than 10-20x that that of an average employee.

    fakeemail

    July 25, 2016 at 8:46 PM

  16. Great Lion, check out the Wall Street Journal article today about CEO compensation. Basically, there is a negative correlation between CEO pay and total return to the shareholder. 100 dollars to the top 20% became 265 dollars but the bottom 20% turned that 100 dollars into 367 dollars. It does seem like there could be an investment opportunity there. Off the top of my head, it seems like Amazon and Berkshire would be companies with low executive pay. Mayer seemed like a spend thrift. I think she probably grew up in a Google bubble and didn’t realize how tight things are in the real world. She still is hot though.

    mark

    July 25, 2016 at 9:13 PM

  17. Is there any successful company in tech led by a woman? I am really curious. Also considering the astounding success of the white males with the tech industry, isn’t it a proof that lack of diversity is good?

    Hashed

    July 25, 2016 at 9:19 PM

    • Both Silicon Valley and Wall St lack diversity. The two most lucrative of industries.

      San Francisco is gradually losing its demographic diversity, and Manhattan is following suit. Yet, these liberal centers set a tone that people of stark differences must live together and learn to tolerate one another.

      JS

      July 25, 2016 at 10:09 PM

      • Lets of non-whites work in Silicon Valley, but they’re the wrong kind of non-whites.

        Lion of the Blogosphere

        July 25, 2016 at 10:12 PM

      • The numerous East and South Asian males found among SV’s workforce isn’t “diversity” with our liberal narrative, where the need for immediate results prevent the less capable groups from working there. Technology, similar to the manual labor-hands on industry (those lauded by Yakov), is very results driven.

        JS

        July 25, 2016 at 10:31 PM

      • Look buddy, just because something is lucrative does not mean the people involved are smart. Yes the grifters of Wall Street and Silicon Valley are smarter than your typical street hustler, but there is functionally no difference between the two except the magnitude of damage each can inflict on society. I suppose the people running Enron were also smart. Too bad we don’t prosecute the Enrons anymore. Instead we reward them with more cheap capital to keep this ponzi scam of an economy going.

        Grifter

        July 26, 2016 at 4:46 PM

      • Unbridled greed and petty consumerism, made America into a nation of wasted individuals.

        JS

        July 26, 2016 at 6:11 PM

    • There are successfull Defense ceo’s (lockheed & general dynamics) that are women interestingly enough. Though defense has a tech component, it survives on the largesse of .gov so once again goes to show that women require the teat of .gov even when they are private sector ceos.

      uatu

      July 26, 2016 at 9:45 AM

    • There is Meg Whitman, currently CEO of HP and formerly CEO of ebay (1998 to 2008). eBay had $4 million in annual revenue when Whitman started there and $8 billion when she left.

      She spent $144 million of her own money as the Republican candidate for governor of California and lost to Jerry Brown in 2010.

      mikeca

      July 26, 2016 at 11:26 AM

  18. She’s kinda cute though, so all is forgiven!

    Actually, this is the most interesting thing about her that I found on Wiki:

    “Since 2008, Mayer has lived in the 38th-floor penthouse suite at the Four Seasons Hotel in San Francisco.”

    Which, you can bet, the company has been paying for. What a parasite.

    peterike

    July 25, 2016 at 9:38 PM

    • She’s kinda cute though, so all is forgiven!

      Just like Elizabeth Holmes !!

      Camlost

      July 26, 2016 at 10:05 AM

      • Lizzy Holmes literally looks like a reptile, disguised as a human with her dark attire, like one of these extraterrestrials from the tv series, ABC’s V. She’s frightening creepy, and not cute at all.

        JS

        July 26, 2016 at 10:58 AM

      • She looks a bit like an ex, especially the loving eyes.

        Glengarry

        July 26, 2016 at 2:57 PM

      • Lizzy Holmes literally looks like a reptile, disguised as a human with her dark attire, like one of these extraterrestrials from the tv series, ABC’s V.

        LOL, you are right. She’s clearly had to much plastic surgery on her eyes, cheeks and mouth. Makes her face look a little fake, like a mask.

        Camlost

        July 26, 2016 at 3:21 PM

  19. Meanwhile a study indicating the best-paid CEOs tend to run some of the worst performing companies.

    http://www.wsj.com/articles/best-paid-ceos-run-some-of-worst-performing-companies-1469419262?mod=e2tw

    Julian

    July 26, 2016 at 4:11 AM

  20. I’d worked for a guy who had run a 100 million project into the ground. This is what he used to do for a living: come to a company with a bang, get the budget, hire people, lots of cronies, do business with his buddies, run the the project into the ground and hit the road with a severance package or without. He treated me royaly, but every day I wanted to strangle him with my bare hands just like I want to do to my Tajik, he deserved it more though.

    Yakov

    July 26, 2016 at 8:17 AM

  21. I guess Mayer’s crusade to make all Yahoo employees start coming into the office in traditional fashion didn’t have the wondrous results she expected… and it caused a lot of very good employees to become indignant or leave once their work-from-home rights were peeled away.

    Camlost

    July 26, 2016 at 8:20 AM

    • “I’m leaving in order to spend more time with my family.”

      Glengarry

      July 26, 2016 at 3:01 PM

  22. To be fair, the stock did more than double under her watch. She can’t take much credit for it though — YHOO is mostly a holding company for Ali Baba shares. It can’t sell the shares for tax reasons. She tried but couldn’t escape the tax bill.

    If she had managed to sell Yahoo’s core business for 4x what she actually did, which would be an amazing performance that quite possibly no human being on earth could accomplish in the time she was given, the stock would be worth about 30% more.

    For all that, was her compensation fair? Who knows. Probably not, though it might be fairer than life in general.

    It seems that either female tech CEOs tend to be worse, or they tend to be dealt nigh-unwinnable hands. HP and IBM are prime examples. YHOO will not go down as a prime example. She was a caretaker CEO whose performance had little effect on the stock.

    Wency

    July 26, 2016 at 9:22 AM

  23. You missed the kicker, Lion. She blames the media for sexism.

    http://www.huffingtonpost.com/entry/marissa-mayer-calls-out-media-for-sexist-coverage_us_57965ea9e4b01180b52fd057

    Maciano

    July 26, 2016 at 10:11 AM

  24. Class consciousness in action. It’s within executives and board members interests to keep the wages of workers down — but when considering how much to pay a CEO, board members are considering how much to pay someone who is just like them, who does the kind of jobs they do. Of course they like the precedent of massively overpaying for jobs they themselves otherwise occupy outside their role as board member. It is within the broader class interests of board members and large share holders to overpay executives.

    chairman

    July 26, 2016 at 1:11 PM

    • Insightful comment as always Chairman. Collusion at the highest ranks is par for the course for today’s self annointed aristocrats. Then again all aristocrats are self annointed.

      ChairSatan

      July 26, 2016 at 4:51 PM

  25. Charles Murray had a pretty good explanation of why CEOs make so much: https://www.aei.org/publication/a-ceo-explains-why-ceos-make-so-much-money/

    GMR

    July 26, 2016 at 7:57 PM

  26. Was not she the one who fucked larry page to climb up the ranks at google? It paid pretty well.

    Samuel

    July 26, 2016 at 10:23 PM


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