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Yahoo CEO Mayer’s 2013 Target Bonus Set at Double Salary

Yahoo! Inc. paid Chief Executive Officer Marissa Mayer a bonus of $1.12 million in 2012, adding to her pay because the company met its targets for revenue and operating margins.

Though Mayer, who left Google Inc. to join Yahoo in July, received a prorated bonus for working less than a full year, her compensation was increased because the company topped its expectations, Sara Gorman, a spokeswoman at Sunnyvale, California-based Yahoo, said yesterday in an e-mail.

Yahoo shares have surged more than 40 percent since the hiring of Mayer, who recorded the company’s first annual sales increase in four years in 2012. The CEO has updated Yahoo’s home page, revamped its mail and Flickr applications and announced plans to return cash to shareholders through buybacks.

Mayer will receive a salary of $1 million and a target bonus of twice that amount this year, unchanged from last year, the company said yesterday in a filing with the U.S. Securities and Exchange Commission.

She stands to receive more than $50 million in compensation over the coming years, including $12 million in restricted stock units and stock options, $30 million in one-time retention awards and $14 million to make up for stock-based compensation she would have received at Google, the company said in a filing last year.

Chief Financial Officer Kenneth Goldman’s target bonus was set at 90 percent of his 2013 base pay of $600,000, which was also kept the same, according to today’s filing.

Bonuses will be determined by operating income, free cash flow and revenue, excluding costs to attract Web traffic, according to the filing.

Yahoo shares fell less than 1 percent to $22.80 yesterday at the close in New York. They have gained 58 percent in the past year.

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