EMPLOYMENT LAW: Yahoo to Award More than $10 M Severance Pay to Fired CEO

September 8, 2011

Los Angeles - Internet giant company Yahoo has expressed willingness to award former CEO Carol Bartz could get $10.4-million severance, reports said.

The ex-chief’s severance package could leave her with a $10.4-million cash-and-stock severance payout after Yahoo's stock rose on Wednesday.

"No new compensatory or severance arrangements were entered into in connection with these leadership changes," Yahoo said in a Securities and Exchange Commission filing Tuesday. "Ms. Bartz will receive severance benefits for termination without cause as provided in her employment and equity award agreements."

According to an April 29 SEC filing, Bartz would have received a cash severance of $5.2 million and a stock award of $5.2 million if she were fired at the end of 2010. According to CNNMoney, the first news outlet to report on Bartz's severance, she could receive even more than that due to cash bonuses she may be owed for this year on top of her $1-million annual salary and stock options that could kick in if Yahoo's shares hit certain highs by 2012.