Fewer stock awards reduces Yahoo CEO's pay 75 pct. - 1 May 2011

SAN FRANCISCO (AP) — Yahoo Inc. cut CEO Carol Bartz's compensation by
75 percent to $11.9 million last year as the Internet company struggled
to revive its revenue growth, regulatory documents filed Friday show.

The
sharp drop in the value of Bartz's pay package stemmed from the lavish
awards she got when Yahoo hired her in January 2009 to engineer a
turnaround.

The incentives included 5 million stock options with
an exercise price of $11.73. None of those options have vested yet
because Yahoo's stock price still hasn't reached any of the thresholds
outlined in Bartz's contract, which expires in January 2013.

Bartz,
62, also received $10 million in cash and restricted stock during 2009
to make up for the benefits and stock options she gave up when she left
her previous employer, software maker Autodesk Inc., to run Yahoo.

Since
her arrival, Bartz has eliminated hundreds of jobs and jettisoned
online services that didn't fit into her plan to cement Yahoo's status
as the Web's leading hub for news, sports and entertainment. The
cost-cutting helped Yahoo double its operating income to $748 million,
exceeding a goal of $630 million set by Yahoo's board, according to the
company.

That accomplishment is the main reason Yahoo's board gave
Bartz a $2.2 million bonus last year, up from $1.5 million in 2009.
Bartz's salary remained roughly unchanged at $1 million. She also
received stock awards valued at $8.7 million and more than $5,300 in
perks. Last year's stock award included 462,180 options with an exercise
price of $15.24.

Yahoo shares closed Friday at $17.70.

Although
Bartz insists Yahoo is in far better shape than before she arrived, her
strategy hasn't done much for the company's stock price. The shares
dipped slightly last year while the technology-driven Nasdaq composite
index gained 17 percent. The lackluster performance reflected Wall
Street's frustration with a slight decline in Yahoo's revenue last year
while there was a 15 percent increase in Internet advertising — the main
way the company makes money.

Yahoo's stock has done better lately even though

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