Oath, the merged entity of Yahoo and AOL that Verizon is planning to launch this year, will not have Yahoo CEO Marissa Mayer among its executive team.
However, Mayer, who has previously not specified her plans after Verizon completes its acquisition of Yahoo, will be $186 million richer after the transaction closes.
Mayer Will Not Be Part Of Oath
A report revealed that Mayer will not be a part of the executive team of Oath and will step down in June. Her exit is not considered a surprise and has previously been speculated, but this is the first instance that Mayer's departure after the merger has been confirmed.
It was already known that Thomas McInerney, a Yahoo board member since 2012, will replace Mayer as CEO after the completion of the Verizon acquisition.
As the CEO of Yahoo, Mayer failed to reverse Yahoo's fortunes in terms of user numbers and sales amid increasing competition from rivals such as Facebook and Google. The likelihood that she would be brought on to the new company was further erased after the two massive hacks that happened to Yahoo under her tenure.
A source familiar with the matter added that several other Yahoo executives will not be a part of Oath's management, including Chief Financial Officer Ken Goldman, Chief Revenue Officer Lisa Utzschneider, and several senior vice presidents.
AOL CEO Tim Armstrong will lead Oath once it is formed, and he will be joined by two Yahoo executives, namely senior vice president of communications products Jeff Bonforte and senior vice president of publisher products Simon Khalaf.
Armstrong has his work cut out for him, as he will be tasked with remaking the online portfolio of brands owned by Verizon into a global challenger in the digital advertising industry. Among the brands that will be under Oath are AOL's The Huffington Post and Yahoo's Finance, Sports, and News units, along with Tumblr.
Mayer To Make $186 Million On Yahoo Sale
Mayer, however, will receive significant compensation despite her departure and shortcomings as the CEO of Yahoo. According to a report, she is set to receive $186 million upon the completion of Yahoo's sale to Verizon.
That amount, based on the April 24 stock price of Yahoo of $48.15 per share, are from the Yahoo stock, stock options, and restricted stock units that Mayer owns. Mayer will receive the compensation after Yahoo shareholders expectedly vote on June 8 to agree to the proposed purchase of Verizon.
The $186 million figure does not yet include the salary and bonuses that Mayer received during her five-year tenure as CEO of Yahoo, as well as stock that she may have already sold. All in all, her stint as Yahoo CEO allowed Mayer to receive more than $200 million, according to calculations derived from the company's filings.
Mayer earlier took responsibility for the data breaches that affected Yahoo and compromised the data of its users, giving up a cash bonus and a stock award collectively worth $14 million. That amount now pales in comparison to the compensation that Mayer is soon set to receive.
