Yahoo, of Sunnyvale, Calif. said Monday it has hired Henrique de Castro, 47, Google's vice president of partner business solutions, as its new chief operating officer. Mr. de Castro had been rumored to be shifting to Yahoo, where he is reunited with Marissa Mayer, a Google veteran who has served as Yahoo's CEO since July.
Mr. de Castro will paid an annual salary of $600,000, according to a Yahoo regulatory filing, and will receive a one-time retention equity award made up of $18 million in restricted stock and $18 million in performance-based stock options. To make up for compensation left behind at Google, Mr. de Castro will also receive a $1 million cash bonus and restricted stock with a target value of $20 million.
Yahoo said Mr. de Castro will oversee the company's sales, operations, media and business development. "His operational experience in Internet advertising and his proven success...make him the perfect fit," Ms. Mayer said in prepared remarks.
A Google spokeswoman said in a separate statement, "We're grateful to Henrique for all of his contributions at Google and wish him all the best in his new role."
Mr. de Castro is expected to join Yahoo on or before Jan. 22 of next year, Yahoo said. He will join an executive team that has been in flux since Ms. Mayer took the top job at the company. Yahoo is struggling to revamp its core online display advertising business in competition with Google, while also bolstering its relevance in a Silicon Valley increasingly dominated by younger firms such as Facebook Inc.
Prior to joining Google in 2006, Mr. de Castro served as a business development and sales director for Dell Inc.
Yahoo is expected to report third-quarter earnings next week. Wall Street analysts expect the company to post a marginal increase in sales compared to the same period last year, and more marked increase in profit.
As Ms. Mayer seeks to put her personal mark on Yahoo, a once-mighty Internet player that has undergone years of upheaval, she has added other fresh faces to its executive suite.
Last month, Yahoo hired former Siebel Systems executive Ken Goldman as its new chief financial officer, replacing Tim Morse. Mr. Morse had been hired by former Yahoo CEO Carol Bartz in 2009. Ms. Bartz's tenure as CEO ended when she was replaced roughly a year ago. Since then, Yahoo has had four different interim or permanent CEOs including Ms. Mayer. Her hiring was widely hailed thanks to her leading of Google's core search efforts before shifting to overseeing its local services and maps.
Daniel Alegre, who is currently Google's president of Asia-Pacific and world-wide mobile, will succeed outgoing sales executive Mr. de Castro as president of its partners business solutions, according to a person familiar with the situation. Google hasn't yet named a successor for Mr. Alegre.