Struggling Internet giant Yahoo! Inc. (YHOO: Quote) on Monday named Henrique de Castro, a Google Inc. (GOOG) executive, as its chief operating officer.
De Castro has been serving as vice president of Google's Partner Business Solutions group since March, where he is responsible for advertising platforms and services for the search engine giant's publisher and commerce partners. Before that, he managed media, mobile and platforms globally for Google, as a vice president beginning in June 2009, and as a director beginning in April 2009. He is with Google since 2006. Prior to Google, de Castro spent two years at PC maker Dell Corp. (DELL).
De Castro will join Yahoo on or before January 22, 2013, or as soon as he has satisfied his obligations to his current employer.
De Castro will be responsible for strategic and operational management of Yahoo!'s sales, operations, media and business development worldwide, and report directly to CEO Marissa Mayer, who was also his colleague at Google before joining Yahoo in July.
"Henrique is an incredibly accomplished and rigorous business leader, and I'm personally excited to have him join Yahoo!'s strong leadership team," said Mayer. "His operational experience in Internet advertising and his proven success in structuring and scaling global organizations make him the perfect fit for Yahoo! as we propel the business to its next phase of growth."
At Yahoo, de Castro will receive an annual base salary of $600,000 and, beginning in 2013, he will be eligible for an annual bonus under the company's executive incentive plan with a target amount of 90% of annual base salary. de Castro will also receive a one-time retention equity award. $18 million of the equity award will be granted as restricted stock units and $18 million will be in the form of performance-based stock options.
As compensation for forfeiture of compensation from his previous employer, de Castro will receive a cash bonus of $1 million, payable within seven business days of joining Yahoo. Of course, he must repay the bonus if, within six months of joining, he voluntarily resigns without good reason or the company terminates his employment for cause. de Castro will also receive a grant of restricted stock units with a target valuation of $20 million.
The hiring of de Castro as chief operating officer and the recent appointment of Ken Goldman as chief financial officer clearly indicate that Mayer wants to infuse new blood into the Yahoo management team for turning around the Sunnyvale, California-based company's fortune.
Last month, Yahoo appointed Goldman as its chief financial officer, effective October 22. He replaces Tim Morse, who will be leaving Yahoo during the fall.
Yahoo shares are currently gaining 0.45% in after hours trading after closing the day's regular trading session at $15.68, down 20 cents or 1.26%.
by RTT Staff Writer
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