Warren Buffett Expresses His Disappointment over Severance Packages
Billionaire investor Warren Buffett has taken a swipe at the severance package that Yahoo! Inc. (NASDAQ:YHOO), CEO Marissa Mayer, stands to walk away with. Given that the executive stands to earn a whopping $55 million on losing her job, the Berkshire chair believes such payments are unrealistic.
Investors are betting that Yahoo will offload its well-known brand and internet business, which would mostly mean the end of the road for Mayer. The payout disclosed in a regulatory filing consists of cash stock awards and other benefits. Mayer, a former Alphabet Inc. (NASDAQ:GOOGL) executive, has failed to turn around Yahoo’s prospects and given the size of the severance package, Buffett is not happy.
Over the years, Buffett has complained about lofty executive compensation payments. Given that, Yahoo has underperformed in recent years Mayer’s package was always going to come under scrutiny.
“If I were the American shareholder, I think I would get a little irritated with some of these goodbye kisses,” said Mr. Buffett.
Buffett’s Yahoo Interest
Buffett made the claims in an interview on CNBC where he confirmed he was helping finance a bid for Yahoo’s Internet assets. The billionaire says he is open to being a potential investment partner for billionaire, Dan Gilbert, who has tabled a bid for the assets.
However, the financing will have to be done with proper terms and protections given that it is hard to value the assets up for sale. Any deal with Berkshire would also be different given that Buffett is only looking to finance the transaction.
Buffett also reiterated that he does not want to become an equity partner in the purchase of the Yahoo assets. A point of concern to the Berkshire executive is that Yahoo! Inc. (NASDAQ:YHOO) has continuously slipped over the years even on making a flurry of acquisitions. Valuing the business for an equity stake would be a challenge in this case.
Yahoo! Inc. (NASDAQ:YHOO) has entered the second round of the selloff process, the likes of Verizon Communication Inc. (NYSE:VZ) and TPG Capital having already tabled their offers.
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