Yahoo CFO Compensation Weighted Towards Performance, WSJ, Vipal Monga Senior Editor , 9/27/2012

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The compensation package for incoming Yahoo CFO Ken Goldman is heavily tilted towards long-term performance-based awards that are almost identical to those received by recently-appointed CEO Marissa Mayer.

Goldman could make up to $18 million over four years, according to an SEC filing. His package includes a $600,000 base salary and an annual bonus of up to $540,000.

He'll also get restricted stock units that vest over four years valued at $6 million on the day they are granted. In addition, he'll receive stock options worth $6 million that vest over three years, and 76,000 make-whole RSUs, which will be granted on Oct. 25, 2012.

Goldman's compensation in 2011 as CFO of Fortinet totaled $1.6 million, according to an SEC filing.

The package seems to reflect a desire by Yahoo's board to ensure that the executives only benefit if the Internet company's stock rises.

"It's highly leveraged to performance," said Randy Ramirez, a compensation and benefits consultant at BDO USA. "A lot of that is dependent on what Yahoo does over that time period."

Yahoo gave Mayer compensation worth up to $100 million over the next five years, including $14 million in restricted stock units to "partially compensate" her for what she left behind at Google and a one-time $15 million retention bonus vesting over five years.

Mayer also received $6 million in restricted stock units that vest over three years, and another $6 million in stock options vesting over two-and-a-half years.

Joe Sorrentino, a managing director at executive compensation consulting firm Steven Hall & Partners, said it's "unusual" for a CEO and CFO to have such similar long-term award incentives.