At Yahoo, a $42 Million Change of Heart Yahoo chief Marissa Mayer has given the boot to her second in command, Henrique de Castro, just a little over a year after pilfering the exec from rival Google.

By Geoff Weiss

Opinions expressed by Entrepreneur contributors are their own.

Since taking the helm at Yahoo in July 2012, Marissa Mayer has made some dramatic and expensive moves. Her latest decision to discharge the company's second in command, chief operating officer Henrique de Castro, can be counted among them.

In an internal memo obtained by the tech website Re/code, Mayer reflects on her pride in the company's achievements throughout 2013 as well as her optimism for the year ahead. "During my own reflection," she writes, "I made the difficult decision that our COO, Henrique de Castro, should leave the company."

The tides at Yahoo have certainly turned. It was just over a year ago that Mayer pilfered de Castro from Google - her old stomping grounds - to serve as the company's "top ad executive and liaison to marketers on Madison Avenue," reports The Wall Street Journal.

Related: Marissa Mayer's Smartest and Dumbest Moves at Yahoo

But apparently, he couldn't deliver. In 2013, Facebook overtook Yahoo as the second largest seller of digital ads worldwide, according to a report by eMarketer. Yahoo's percentage of total digital ad share worldwide also tumbled from 3.37% in 2012 to 2.87% in 2013.

No matter how you shake it, Mayer's change of heart will be costly. According to the Journal, de Castro's severance package could be worth as much as $42.1 million, which includes $41.5 million in restricted shares, $600,000 in cash severance and $7,672 worth of continued health benefits.

While Mayer did announce some additional restructures of Yahoo's leadership team in the internal memo, a successor has not yet been named.

Related: Report: Hot CEOs Bolster Stock Values, Earn Better Salaries

Wavy Line
Geoff Weiss

Former Staff Writer

Geoff Weiss is a former staff writer at Entrepreneur.com.

Editor's Pick

A Leader's Most Powerful Tool Is Executive Capital. Here's What It Is — and How to Earn It.
Lock
One Man's Casual Side Hustle Became an International Phenomenon — And It's on Track to See $15 Million in Revenue This Year
Lock
3 Reasons to Keep Posting on LinkedIn, Even If Nobody Is Engaging With You
Why a Strong Chief Financial Officer Is Crucial for Your Franchise — and What to Look for When Hiring One

Related Topics

Starting a Business

5 Tips For Launching a Business While Keeping Your Day Job

Launching a business while holding down a 9-to-5 is no small feat. It's a common path for aspiring entrepreneurs, but it's not without its challenges.

Growing a Business

The Best Way to Run a Business Meeting

All too often, meetings run longer than they should and fail to keep attendees engaged. Here's how to run a meeting the right way.

Fundraising

Working Remote? These Are the Biggest Dos and Don'ts of Video Conferencing

As more and more businesses go remote, these are ways to be more effective and efficient on conference calls.

Growing a Business

This Stock Screener is on Sale for Memorial Day

invest while mitigating risk with this top-rated stock screening app.

Side Hustle

A Simple Household Chore Turned Into a Side Hustle — Now She Earns Up to $24,000 Per Month

Christian Sanya, 44, was working as a medical laboratory technologist in 2019 when she discovered a side gig that would change her life.