Former Yahoo Executive's Severance Is Larger Than CEO's Salary

Henrique de Castro only worked at Yahoo for 15 months

Getty ImagesFormer Yahoo COO Henrique de Castro
It's crazy enough that executive pay frequently dwarfs normal employee salaries by over 1,795 percent. To think that their severance packages are in the same ballpark is just plain rage-inducing--especially when the executive only worked somewhere for a matter of months. That was the case with Yahoo's former chief operating officer Henrique de Castro, who received a severance package valued at $58 million despite the fact that he only held the position for 15 months.

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De Castro was dropped last January by Yahoo CEO Marissa Mayer, who said he'd failed to bring life back to the company's foundering ad growth.

"Ultimately, Henrique was not a fit and that's a very regrettable conclusion," Mayer told analysts in January, AP reported. "And it's a conclusion that we tried very hard to avoid, but it was the right decision in the end for the company."

The company, which brought on de Castro in October 2012 as Meyer's second-in-command, released the details of his lavish severance package Wednesday, with the board saying it partially stemmed from the costs of luring him away from his former job at Google.

It was also inflated because of rising Yahoo stock, which more than doubled since 2012.

"The board believed at the time Mr. de Castro was hired that he had a unique set of highly valuable skills and experiences that would be key to returning the company to long-term growth and success," said Yahoo's compensation committee. However, their view of his job performance in 2013 was allegedly so bleak that they decided not to give him a bonus last year.

Nevertheless, the executive's severance package was more than double the amount Yahoo's CEO received in salary last year (Mayer made $24.9 million). And even if the company's stocks hadn't doubled over the course of de Castro's tenure, AP reported that he still would've received around $17 million.

In other news, teachers are being paid over 1000 times less than what de Castro was given to stop doing his job.

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Yahoo's Ousted COO Gets $58M Severance Package

Filed under: Firings
Mack Gelber

Mack Gelber

Associate Programming Manager

Mack Gelber is a Brooklyn-based writer and editor who has covered entertainment for AOL TV, and contributed fiction to Joyland Magazine and the Bushwick Review. He is a graduate of Oberlin College, where he studied creative writing. Twitter: @mackgelber

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jamers46921

Nothing will ever change as long as 40% of the American people believe in GOP and its policies of holding down the poor, and stagnating saleries for the middle class. A wage of $10.10 is not a living wage. I saw a 74 yr old woman working in McDonalds yesterday, is that crazy or what?

April 17 2014 at 10:28 PM Report abuse rate up rate down Reply
uforme693432588

Can u say this world if f''d up!!!

April 17 2014 at 10:11 PM Report abuse +1 rate up rate down Reply
1 reply to uforme693432588's comment
jamers46921

Definitely agree, and not the world, the do nothing Congress and Senate in this country, what a sham and disgrace. Could you belive these a..holes wanting to shut down the goverment last year because they didn't like the President the majority of the people elected.

April 17 2014 at 10:32 PM Report abuse rate up rate down Reply
drchicago1

Tax the 1%

April 17 2014 at 9:58 PM Report abuse +1 rate up rate down Reply
masteromodels

These type of transactions a a big part of the American downfall. It has to stop.

April 17 2014 at 9:52 PM Report abuse +1 rate up rate down Reply
mminicinc

The USA Government should get involved to investigate this company that can afford to pay this person this much
and some person do not have a food on the table ????

April 17 2014 at 9:49 PM Report abuse +1 rate up rate down Reply
npage123

OUTRAGEOUS !!!!!

April 17 2014 at 9:48 PM Report abuse +1 rate up rate down Reply
doncheech

but don't raise the minimum wage....it will stagnate business....starbucks CEO got $260 million in compensation in 2013 and on and on with other CEO's.....the average American workers salary went up 1.7 % in the last 4 years.

April 17 2014 at 9:38 PM Report abuse +1 rate up rate down Reply
lugmario

Chances are he had it worked out to have the money put directly into a Chinese fixed bond so he could then move it to the Vatican or Cook Islands and not pay a dime in taxes. This is perfectly an acceptable practice for the people at FOX NEWS who tried their best to make a patriot hero out of a man who doesn't even recognize the Authority of the US government. I guess that means that anyone can needing Redwood siding for their house can go into the National Parks of their state and cut what they need as long as they bring along the FOX news crew and as many friends and neighbors with automatic weapons and body armor to overpower the small government forest service. It's their right as an American to take what they want in the state they live in because it of course belongs to them. If this would have been a mother who lost her job and was caught stealing a butchering one of his cows to feed her starving children, she would have been called a thief and taker and just another example of a liberal taking what you want. If this farmer had voted Democrat his entire life, FOX would have said he was pushing Obama around like Putin because we all know their kids or grandkids will get drafted now that are military numbers are at an all time low and all they can talk about as foreign diplomacy is to go to war with Palestine, Iran, back to Iraq to get the oil, North Korea, Russia and anywhere else the rich have money to be protected!

April 17 2014 at 9:28 PM Report abuse +1 rate up rate down Reply
KATHI AND JOHN

now he can get a job working at the white house

April 17 2014 at 9:08 PM Report abuse -1 rate up rate down Reply
dgek

So glad I sold all my yahoo stock long ago. They should just sell the worthless company to highest bidder and get over it. There is No hope for that company. Pretty much the same for AOL.

April 17 2014 at 9:06 PM Report abuse rate up rate down Reply

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