We got another member in Silicon Valley’s $1 CEO club. The new member is Jeremy Stoppelman, CEO of business reviews site Yelp. Stoppelman has joined two other popular members of the club, namely Steve Jobs and Mark Zuckerberg.
According to Yelp’s 8-K document, filed with Securities and Exchange Commission on February 8, revealed the information. The document states that both CEO Stoppelman and COO Geoff Donaker have reduced their base salaries to $1 for 2013.
But, people familiar with this kind of practice know very well that Stoppelman will actually take a handsome amount by the end of this year in return of working for a buck. His actual package includes 665,000 options that will vest at different rates.
Among the total options, one twenty-fourth of the 90,000 options will vest each month to Stoppelman’s account. At the current rate, the market value of these 90,000 shares is $2 million. The amount is definitely not cheap enough, and don’t forget about the rest 575,000 shares.
Yelp COO Donaker will also get 90,000 options in similar terms to Stoppelman’s. He will get another 425,000 options.
Thanks to: CNET