Yahoo Will Spend $62 Million On Its COO

Henrique de Castro

Photo: Google

As Yahoo’s CEO, Marissa Mayer is spending a massive amount to pry her former colleague, Henrique de Castro, away from Google and install him as COO.According to our reading of de Castro’s employment letter, which Yahoo just filed with the SEC, the total over four years comes to about $62 million—not counting new annual stock grants.

That’s about half the total that Mayer could rake in as CEO over a similar period.

Here’s how it breaks down:

  • $600,000 in annual salary
  • $540,000 a year in target bonus
  • $36 million in stock awards over three years
  • $1 million in cash within seven days
  • $20 million in stock over four years

Here’s an interesting twist: According to the offer letter, de Castro must start within three months and one week—or sooner, if Google relieves him of his “employment obligation.”

He also will begin work in London, transferring to Yahoo’s Sunnyvale headquarters after a work visa is arranged.

That suggests that de Castro has some kind of contractual obligation to Google tied to his work permit.

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