Yahoo has announced that Marissa Mayer will cease to continue in her role as the company’s CEO following its sale to Verizon.
The company said that it has named board member Thomas McInerney as the chief of the newly spun off Altaba. McInerney has served as a member of Yahoo’s board since April 2012.
In January, Yahoo formed Altaba with the assets that are not included in its sale to Verizon. Alibaba and Yahoo Japan own stakes in Altaba.
In a regulatory filing, the company said Mayer will receive a severance package of $23m, which consists of $3m in cash and equity worth nearly $20m at current market value.
For Mayer to get this severance there will need to be a successful closing of the transaction and she would need to be terminated without cause or leave for good reason.
However, Mayer and Yahoo CFO Kenneth Goldman will remain in their roles until the completion of the acquisition. It has already been confirmed that Mayer will be stepping down from the Board and as CEO of the remaining company, which is to be named Altaba.
The leadership of the assets being acquired by Verizon is not yet clear.
Separately, Yahoo said that Verizon had asked to slash the deal price by $925m after the disclosure of cyber attacks on its network.
But Yahoo agreed to offer discount of $350m on the acquisition price.
The $4.48bn transaction is expected to be completed by the end of June this year.
Earlier this year, Yahoo announced that it would need more time to complete the sale of its web operations to Verizon. It required more time to finish the work needed to meet closing conditions of the deal.
The transaction was initially expected to close in the first quarter of 2017.
In July last year, Telecoms giant Verizon agreed to pay $4.8bn to acquire Yahoo’s core internet business and some real estate assets.
But the revelations of cyber attacks on Yahoo had raised doubts on the fate of the deal.
In October, it was discovered that a cyber attack on Yahoo in 2014 led to a breach of over 500 million email account details on the network.
The company reported better-than-expected earnings for the fourth quarter of 2016. Revenue rose 15.4% to $1.47bn in the October-December compared to the same period a year earlier.