Yahoo boss’ $US23m payout makes Spark MD cringe

Spark MD Simon Moutter (Chris Keall)
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Simon Moutter had an angry reaction to news that Yahoo chief executive Marissa Mayer will get a $US23 million golden handshake as her company is sold to Verizon.

“This makes me cringe after the years of hell Yahoo has put our company and our customers through,” the Spark managing director posted to Twitter last night.

Former Spark executive Chris Quin also weighed in, calling Yahoo "dishonest".

To which many Spark customers would probably reply: “So why didn’t you bail out years ago?” after so many instances Yahoo Xtra Mail spam, hacking, privacy breaches and outages.

Spark started transitioning several hundred thousand users of its web mail service from Yahoo to the Sam Morgan-backed, Auckland-based SMX in the New Year. It says the process should be finished some time in April.

At times, it has tied up 100 staff, the company says.

Ms Mayer presided over years of losses, a series of failed restructures, aimless strategy and after taking the reins at Yahoo in 2012.

The fallout from the latest data breach scandal alone has seen $US350 million knocked off Yahoo’s (already fire-sale) price to Verizon. Let alone the decision to re-name the rump of Yahoo “Altaba.”

And what of Yahoo co-founders Jerry Yang and David Filo, who presided over the company’s glory days of surging share price and profit?

An SEC regulatory filing shows Mr Yang receiving nothing (arguably valid, given his opposition to a proposed Microsoft buy-out costs shareholders billions); Mr Filo gets $US15,000 plus two years’ health insurance.


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13 Comments & Questions

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Lots of American companies are dishonest.
I remember buying an Apple mac mini and having some problems so I decided to complain through their online survey they have when you buy something. I discovered that there was no place to complain properly and began to understand why Apple has such high customer satisfaction ratings.
Their customer surveys are rigged to give positive answers.

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Moutter should hold his envy in check. On a par basis for business ie Yahoo v Spark, Moutter is grossly overpaid. As a Spark customer is am annoyed at that considering all the crap I have to deal with for my home broadband.

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Amazing how Moutter suddenly finds himself riding a horse that is a few hands higher than all the rest...

His wife should tell him that such disingenuous behaviour doesn't become him.

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Glasshouses come to mind. Even Spark's latest Netflix promotion is a shambles with some long time customers unable to activate the offer.

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Sorry to say, spark is just as dishonest,we have been trapped by xtra and try get rural broadband,

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Moutter should stick to running Spark better, and stop pontificating (for that is what it is) about other businesses.

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Few Chief Executives are successful.

They tend to rely on buying the competition, to keep the illusion of growth going. Most are cost, rather than revenue focued. The slash the workers to drive cost down, and forget this generally translates into poorer customer service.

Most are driven by short term incentives, and gone before the effects of this are reflected in falling sales and profit. There's a big club out there, and most arent worth what they are paid. Poor governance (another club) is a big part of the problem.

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very good analysis

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word on the street is that cost cutting at Spark is due in 3, 2, 1 ...

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So far the only change under Moutter seems to be renaming Telecom as Spark.....

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Don't forget replacing the logo with a child's scribble of a cat's bum.

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I was probably guilty of re-tweeting that joke at the time, but overall the rebranding seems to have gone pretty well. Hardly anyone says "Telecom" these days.

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Surprised no one has looked up any research about how Yahoo has performed as a company with Marissa Mayer as CEO. The short version is that she is / was a terrible manager and has lost billions of brand equity as well as burned through billions more in buying 53 more companies to destroy. See http://gizmodo.com/heres-what-happened-to-all-of-marissa-mayers-yahoo-ac... and plenty more.

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