Summary of Compensation Payable to Named Executive Officers
Base Salary . The Compensation Committee (the “Committee”) of the Board of Directors of Yahoo! Inc.
(“Yahoo!”) approved the annual base salaries (effective January 1, 2006, except as noted below for Mr. Semel)
of Yahoo!’s executive officers. The following table shows the annual base salary for 2006 of our Chief Executive
Officer and four most highly compensated other executive officers (based on their total annual salary and bonus
compensation during 2005), also referred to as the Named Executive Officers.
Bonus . In addition to receiving base salary, Yahoo!’s Named Executive Officers are also generally eligible to
receive an annual bonus as described below.
For each of 2006 through 2008, Mr. Semel will be eligible to receive a discretionary annual bonus payable in the
form of a fully vested nonqualified stock option for up to 1 million shares of Yahoo! common stock with an
exercise price equal to the closing trading price of Yahoo!’s common stock on the date of the grant of the award.
The amount of each such annual bonus, if any, will be determined by the Committee based on the achievement of
Yahoo!’s strategic and operating priorities each year and other objective and subjective performance criteria to
be established by the Committee.
For each of 2006 through 2009, Mr. Rosensweig and Ms. Decker will each be eligible to receive an annual
target cash bonus of $1 million. For each of 2006 and 2007, Mr. Nazem will be eligible to receive an annual
target cash bonus of $1 million. Mr. Callahan is also generally eligible to receive an annual bonus. In each case,
the amount of an executive’s annual bonus, if
any, will be determined by the Committee based on the executive’s and Yahoo!’s performance for the relevant
Long-Term Incentives . The Named Executive Officers are also eligible to receive equity-based incentives and
other awards from time to time in the discretion o