Yahoo CEO Bartz Gets $1 Million Salary, Stands To Earn Many Times That

Carol Bartz's four-year contract, dated Jan. 13, also makes her eligible for an annual target bonus of 200 percent of base pay, or $2 million, which will be based on her performance and ultimately determined by the board. If her performance is deemed particularly strong, she stands to get a maximum of two times the target amount, meaning she could get $4 million in bonuses.

Her predecessor, Jerry Yang, had been paid a base salary of $1 a year, while Sue Decker, Yahoo’s soon-to-be ex president, got bumped up to $850,000 from $500,000, as NSDQ: YHOO) board, which has been expanded to 12 to accommodate her.

Tech Trader Daily: Eric Savitz took out his calculator and made a few rosy assumptions. In all, he suggests that Bartz stands to make a grand total of $40.75 million. How? Suppose the stock goes from $12 to $18. So assume she’ll get the $4 million bonus on top of her $1 million salary. Then add to that vested options worth about $10 million, the $8 million equity grant and the $10 million compensatory grant.

Don’t forget the 50 percent rise in both the value of the equity grant and 75 percent of the equity grant, which would translate into $7.75 million more.

By David Kaplan of PaidContent, used under Creative Commons