Yahoo raised eyebrows in the media world in August when it hired former Time Inc Editor-in-chief Martha Nelson.
But news about Nelson’s pay package, reported by Politico’s Joe Pompeo on Wednesday, is likely to make jaws drop.
Yahoo is giving Nelson — who is the internet company’s Global editor-in-chief — an annual compensation package of $5 million a year, Politico said, citing a source with direct knowledge of the deal.
Yahoo CEO Marissa Mayer personally recruited Nelson, and waited for Nelson’s non-compete to expire after she left Time Inc in 2013, according to Politico. Mayer described herself as Nelson’s “biggest fan” on her Tumblr page. “I have followed her work for nearly 20 years. She was the first and only name on my list for Editor-in-Chief of Yahoo and I’m so happy that we have made this a reality!” Mayer wrote.
Nelson is among several high-profile and expensive hires that Mayer has made from the media industry, including TV anchor Katie Couric, who reportedly renewed a $10 million contact with Yahoo, and tech writer David Pogue. Despite all the big names, Yahoo’s media unit has not done much to help revitalize Yahoo’s business.
We’ve heard from a person familiar with the matter that the media group is due for a restructuring, although the recent news about its plan to spin Yahoo off into a separate company may change some of those plans.
We’ve reached out to Yahoo for comment and will update this post if we hear back.