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June 19, 2007
Semel Insists He Jumped
Yahoo's newly ex-CEO Terry Semel insists he jumped yesterday, that he wasn't pushed:“I will not get a separation package because quite frankly I resigned. I know everyone will think I was pushed.”[via FT]
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I don't think rational thought is going to lead to a reasonable answer here. There was much more going on than meets the eye, me-thinks, so Semel's comp decision is just one of the side-effects.
Broadly, it's always better to negotiate an exit, and Semel is smart enough to know that. Him staying around was almost certainly intended to be read as a way of strengthening Yang's position, and getting around the idea of having him be seen as weak and inexperienced as CEO. It has not had that effect, of course.
Separation package? What about the $71mm he made last year for getting Yahoo! nowhere?
THAT was his separation package, and now he gets to day "I wasn't fired." because it wasn't called that. It was just a big paycheck for poor performance.
Can a compensation expert please explain why Semel jumped (without a golden parachute) rather than wait to be pushed out (and keep the "separation package")...
WWYD... What Would You Do?