In the latest coup for what was an early Internet sensation when it hit the scene in the mid-nineties Yahoo Inc. has recruited a top advertising sales executive from its rival Google, Vice President Henrique de Castro, as its new Chief Operating Officer. Mr. de Castro will take the reins from another Google veteran Marissa Mayer who has been CEO and President at Yahoo since July.
The move appears to be amicable. Google announced through a spokeswoman, "We're grateful to Henrique for all of his contributions at Google and wish him all the best in his new role," reported The Wall Street Journal.
While Yahoo released a statement: "His operational experience in Internet advertising and his proven success make him a perfect fit."
de Castro comes with an exorbitant price tag comprising a $600,000 salary, a one-time retention equity award of $18 million in restricted stock and $18 million in performance-based stock options, plus a $1 million cash bonus and restricted stock with a target value of $20 million, according to filings obtained by The WSJ. He will oversee the company's sales, operations, media and business development.
Yahoo reported a drop of 4.2 percent in net income for its second quarter, over the same quarter a year ago to $228.5 million, or 18 cents a share.
Yahoo replaced nearly half of its directors earlier this year, following the resignation of co-founder Jerry Yang. But troubles persisted with its choice of Scott Thompson as CEO when a shareholder questioned Scott's academic credentials, and it was discovered that he did not have a degree in computer science as he claimed, The New York Times reported. Thompson left the company in May and Ms. Mayer became the next president and CEO in July.
Yahoo is the web's fourth largest site, serving approximately 700 million people.
Mr. de Castro is expected to join Yahoo, on or before Jan. 22, The WSJ reported.
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