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.
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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