Advertising

The Seattle Times Company

NWjobs | NWautos | NWhomes | NWsource | Free Classifieds | seattletimes.com

Business / Technology


Our network sites seattletimes.com | Advanced

Brier Dudley's Blog

Brier Dudley offers a critical look at technology and business issues affecting the Northwest.

E-mail Brier| 206.515.5687 | Follow Brier on Twitter| Microsoft Pri0 blog| RSS feeds Subscribe | Blog Home

March 27, 2008 4:17 PM

Why Ballmer can't get anyone for Yahoo board: The pay stinks

Posted by Brier Dudley

Some think it's hogwash and Microsoft's about to close the Yahoo deal amicably, but the New York Post is reporting whispers on Wall Street that Ballmer & Co. is having trouble finding friendly faces to stuff onto Yahoo's board.

Maybe it's because Yahoo board compensation has been awful lately.

Yahoo compensates board members with stock options, many of which are underwater. At least that's how I'm reading the company's last proxy, in April 2007.

The filing is a little old -- reporting 2006 data -- but it suggests there isn't much upside to Yahoo board duty.

Maybe Microsoft has earned enough sympathy on the current board -- when its bid pulled YHOO up to the high $20s, some of the directors' recent grants went back in the money. YHOO closed at $28.09 today.

Footnotes from Yahoo's last proxy, with exercise prices in bold:

Each non-employee director listed in the table above was granted a stock option to purchase 15,000 shares on May 25, 2006 under the Directors' Plan with an exercise price of $32.92, which had a grant date fair value of $158,513. The outstanding option awards held by each director at 2006 fiscal year-end: Mr. Bostock (236,195), Mr. Burkle (415,000), Mr. Joshi (115,000), Mr. Kern (755,885), Mr. Kotick (235,626), Mr. Kozel (271,233), Mr. Wilson (328,200) and Mr. Hippeau (842,599, which includes an option to purchase 200,714 shares granted by SOFTBANK).

Board members are also in the habit of taking stock options instead of fees. Excerpts from more footnotes:

In lieu of cash, Mr. Hippeau elected to receive payment of his chair fees for the third and fourth quarters of 2006 in the form of options to purchase the Company's common stock. Accordingly, Mr. Hippeau was granted an option to purchase 445 shares on September 29, 2006 with an exercise price of $25.28, which had a grant date fair value of $3,790, and an option to purchase 440 shares on December 29, 2006 with an exercise price of $25.54, which had a grant date fair value of $3,608.

In lieu of cash, Mr. Kern elected to receive payment of his chair fees for the third and fourth quarters of 2006 in the form of options to purchase the Company's common stock. Accordingly, Mr. Kern was granted an option to purchase 445 shares on September 29, 2006 with an exercise price of $25.28, which had a grant date fair value of $3,790, and an option to purchase 440 shares on December 29, 2006 with an exercise price of $25.54, which had a grant date fair value of $3,608.

In lieu of cash, Mr. Kotick elected to receive payment of his chair fees for the third and fourth quarters of 2006 in the form of options to purchase the Company's common stock. Accordingly, Mr. Kotick was granted an option to purchase 445 shares on September 29, 2006 with an exercise price of $25.28, which had a grant date fair value of $3,790, and an option to purchase 440 shares on December 29, 2006 with an exercise price of $25.54, which had a grant date fair value of $3,608.

But of course, there's more at stake here than money.

Digg Digg | Newsvine Newsvine

Comments
No comments have been posted to this article.

Advertising

Marketplace

Advertising

Advertising

Categories
Calendar

May

Sun Mon Tue Wed Thu Fri Sat
          1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
31            
Browse the archives

May 2009

April 2009

March 2009

February 2009

January 2009

December 2008

Features

Video

Demo of the Week: TeachStreet.com

Share your thoughts!

Gadgets and games | Fun stuff I've written about lately includes Apple's iPhone, Hewlett-Packard's HDX laptop and Microsoft's Halo3. Also on the radar are new digital video boxes such as the Tivo HD and the Vudu.