Terry Semel
Encyclopedia
Terry Semel is an American corporate executive who was the chairman and CEO of Yahoo! Incorporated. Previously, Semel spent 24 years at Warner Bros.
, where he served as chairman and co-chief executive officer. In June 2007, Semel resigned as CEO due in part to pressure from shareholders' dissatisfaction over Semel's compensation (in 2006 - salary $1
, stock options worth $70 million) and performance. Semel had earned over $500 million in his tenure at Yahoo, while Yahoo's stock appreciated at 40% per year. In the same period, Yahoo's closest competitor, Google
, saw stock growth of about 55% per year.
. He was the middle child and has two sisters. At the age of 23, he graduated from Long Island University
in Brooklyn with a B.S. degree in accounting.
, in exchange for millions of stock options in Yahoo. His previous annual salary was US$600,000.
Over the past three years Semel sold 18.1 million of his stock options for a gain of $450 million. He maintains another 18.6 million unexercised stock options.
All Things Digital conference, Semel was asked if Yahoo! would have cooperated with Nazi Germany
. In response, Semel, who is Jewish, stated, "I don’t know how I would have felt then." He added, "I don’t feel good about what’s happening in China today."
suggested he look at buying Google, whose founders looked up Yahoo's inventors. Semel had dinner with Larry Page
and Sergey Brin
, asking them what their business was with Yahoo paying only $7 million annually as its biggest licensor of Google search technology. So Semel proposed to buy Google. They replied that they wanted $1 billion and didn't want to sell. Semel said he'd think about the price.
Another dinner and Semel agreed to the $1 billion. Larry Page and Sergey Brin replied that they wanted $3 billion and didn't want to sell.
as its president. Decker, who had been recently promoted to oversee Yahoo's advertising operations, had widely been seen as Semel's apparent heir. Semel later resigned from his post as non-executive Chairman from Yahoo completely on January 31, 2008.
, The Paley Center for Media and the Guggenheim Museum
. In June 2004, Semel and his wife made a donation of $25 million to the UCLA
Neuropsychiatric Institute. As such, the name of the Institute was renamed to the "Jane and Terry Semel Institute of Neuroscience and Human Behavior at UCLA."http://today.ucla.edu/2004/040629news_gift.html In 2005, Semel was given the UCLA Medal, that University's highest honor, and the "Legend in Leadership Award" from the Chief Executive Leadership Institute of the Yale School of Management
.
Semel lives in the East Gate Old Bel Air
section of Los Angeles
, California
.
His son, Eric Semel, is the CEO of 365 Media Group
in the UK. His daughter Courtenay Semel appeared on the reality show Filthy Rich: Cattle Drive
in 2005.
Warner Bros.
Warner Bros. Entertainment, Inc., also known as Warner Bros. Pictures or simply Warner Bros. , is an American producer of film and television entertainment.One of the major film studios, it is a subsidiary of Time Warner, with its headquarters in Burbank,...
, where he served as chairman and co-chief executive officer. In June 2007, Semel resigned as CEO due in part to pressure from shareholders' dissatisfaction over Semel's compensation (in 2006 - salary $1
One-dollar salary
Several top executives in large businesses receive a salary of one dollar. In place of a salary, the executives receive stock options. In the United States, this approach impacts personal tax liability because although stock and option grants are taxed at federal income rates, they are exempt from...
, stock options worth $70 million) and performance. Semel had earned over $500 million in his tenure at Yahoo, while Yahoo's stock appreciated at 40% per year. In the same period, Yahoo's closest competitor, Google
Google
Google Inc. is an American multinational public corporation invested in Internet search, cloud computing, and advertising technologies. Google hosts and develops a number of Internet-based services and products, and generates profit primarily from advertising through its AdWords program...
, saw stock growth of about 55% per year.
Early life
Semel's father was a women's coat designer and his mother was a bus company executive. He was raised in Bay Terrace, a community in Bayside, QueensBayside, Queens
Bayside is a suburban neighborhood in the borough of Queens in New York, New York in the United States. Bayside is known as one of the most expensive areas to live in Queens, with well kept homes and landscaping...
. He was the middle child and has two sisters. At the age of 23, he graduated from Long Island University
Long Island University
Long Island University is a private, coeducational, nonsectarian institution of higher education in the U.S. state of New York.-History:...
in Brooklyn with a B.S. degree in accounting.
Yahoo compensation
In April 2001, Semel was granted stock options with an SEC Fair Value of over $110 million as a bonus to join Yahoo. On March 10, 2004 Semel was granted options to purchase Yahoo stock worth $120 million at an exercise price of $41.70 ( the low closing price for 2004 was $41.65). Within a month that stock was trading at $56.00, making him a profit of $50 million on that grant alone. Between 2003 and 2006 he netted $450 million as a result of exercising options and selling stock. On March 7, 2007 he held stock and unexercised options with a value of $350 million, which he was granted as compensation. During June 2006, Terry Semel's annual salary was reduced to one dollarOne-dollar salary
Several top executives in large businesses receive a salary of one dollar. In place of a salary, the executives receive stock options. In the United States, this approach impacts personal tax liability because although stock and option grants are taxed at federal income rates, they are exempt from...
, in exchange for millions of stock options in Yahoo. His previous annual salary was US$600,000.
Over the past three years Semel sold 18.1 million of his stock options for a gain of $450 million. He maintains another 18.6 million unexercised stock options.
Yahoo!-China cooperation controversy
As CEO, Semel approved Yahoo!'s cooperation with Chinese officials to release previously confidential Yahoo! information to the Chinese government. This action by Yahoo! was not well received and Semel showed signs of regret as to how that information was being used. For example, in a widely publicized exchange at The Wall Street Journal'sThe Wall Street Journal
The Wall Street Journal is an American English-language international daily newspaper. It is published in New York City by Dow Jones & Company, a division of News Corporation, along with the Asian and European editions of the Journal....
All Things Digital conference, Semel was asked if Yahoo! would have cooperated with Nazi Germany
Nazi Germany
Nazi Germany , also known as the Third Reich , but officially called German Reich from 1933 to 1943 and Greater German Reich from 26 June 1943 onward, is the name commonly used to refer to the state of Germany from 1933 to 1945, when it was a totalitarian dictatorship ruled by...
. In response, Semel, who is Jewish, stated, "I don’t know how I would have felt then." He added, "I don’t feel good about what’s happening in China today."
Lost chance to take over Google
After joining Yahoo, company founders Jerry Yang and David FiloDavid Filo
David Filo is an American businessman and the co-founder of Yahoo! with Jerry Yang.Until the company decided to switch to PHP, his Filo Server Program, written in the C programming language, was the server-side scripting software used to dynamically serve variable web pages, called Filo Server...
suggested he look at buying Google, whose founders looked up Yahoo's inventors. Semel had dinner with Larry Page
Larry Page
Lawrence "Larry" Page is an American computer scientist and internet entrepreneur who, with Sergey Brin, is best known as the co-founder of Google. As of April 4, 2011, he is also the chief executive of Google, as announced on January 20, 2011...
and Sergey Brin
Sergey Brin
Sergey Mikhaylovich Brin is a Russian-born American computer scientist and internet entrepreneur who, with Larry Page, co-founded Google, one of the largest internet companies. , his personal wealth is estimated to be $16.7 billion....
, asking them what their business was with Yahoo paying only $7 million annually as its biggest licensor of Google search technology. So Semel proposed to buy Google. They replied that they wanted $1 billion and didn't want to sell. Semel said he'd think about the price.
Another dinner and Semel agreed to the $1 billion. Larry Page and Sergey Brin replied that they wanted $3 billion and didn't want to sell.
Resignation
Semel ended his six-year tenure as chief executive officer Monday, June 18, 2007 and handed over the reins to co-founder Jerry Yang in the Internet icon's latest attempt to regain investor confidence. Semel, 64, remained chairman in a non-executive role. Besides naming Yang as its new CEO, Yahoo appointed Susan DeckerSusan Decker
Susan Lynne Decker served as president of Yahoo! Inc in 2007 and 2008, leading the operations of the company during Jerry Yang's reign as CEO.-Early history and personal life:...
as its president. Decker, who had been recently promoted to oversee Yahoo's advertising operations, had widely been seen as Semel's apparent heir. Semel later resigned from his post as non-executive Chairman from Yahoo completely on January 31, 2008.
Other activities
Semel is currently on the Board of Directors of Polo Ralph Lauren CorporationPolo Ralph Lauren
Ralph Lauren Corporation is a luxury clothing and goods company of the American fashion designer Ralph Lauren. Ralph Lauren specializes in high-end casual/semi-formal wear for men and women, as well as accessories, fragrances, home and housewares...
, The Paley Center for Media and the Guggenheim Museum
Solomon R. Guggenheim Museum
The Solomon R. Guggenheim Museum is a well-known museum located on the Upper East Side of Manhattan in New York City, United States. It is the permanent home to a renowned collection of Impressionist, Post-Impressionist, early Modern, and contemporary art and also features special exhibitions...
. In June 2004, Semel and his wife made a donation of $25 million to the UCLA
University of California, Los Angeles
The University of California, Los Angeles is a public research university located in the Westwood neighborhood of Los Angeles, California, USA. It was founded in 1919 as the "Southern Branch" of the University of California and is the second oldest of the ten campuses...
Neuropsychiatric Institute. As such, the name of the Institute was renamed to the "Jane and Terry Semel Institute of Neuroscience and Human Behavior at UCLA."http://today.ucla.edu/2004/040629news_gift.html In 2005, Semel was given the UCLA Medal, that University's highest honor, and the "Legend in Leadership Award" from the Chief Executive Leadership Institute of the Yale School of Management
Yale School of Management
The Yale School of Management is the graduate business school of Yale University and is located on Hillhouse Avenue in New Haven, Connecticut, United States. The School offers Master of Business Administration and Ph.D. degree programs. As of January 2011, 454 students were enrolled in its MBA...
.
Personal
His wife, Jane Bovingdon Semel was a former secretary to the actress Susan George. They married in 1977 and have a son Eric (b. March 15, 1969) and three daughters, Courtenay Semel (b. November 11, 1979), Lily Bovington Semel (b. 1985), and Kate Semel (b. March, 1992).. Semel had been previously married to Maryann Semel but they divorced in 1974..Semel lives in the East Gate Old Bel Air
East Gate Bel Air, Los Angeles
East Gate Bel Air is a very small and very wealthy area within the Bel Air section of Los Angeles, California...
section of Los Angeles
Los Ángeles
Los Ángeles is the capital of the province of Biobío, in the commune of the same name, in Region VIII , in the center-south of Chile. It is located between the Laja and Biobío rivers. The population is 123,445 inhabitants...
, California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
.
His son, Eric Semel, is the CEO of 365 Media Group
365 Media Group
365 Media Group is sports media company employing over 100 people in Leeds, England and Cape Town, South Africa.Between 2001 and October 2006, the company was known as ukbetting plc and grew through the acquisition of a number of businesses including: ukbetting.com Ltd, PA Sporting Life Ltd, the UK...
in the UK. His daughter Courtenay Semel appeared on the reality show Filthy Rich: Cattle Drive
Filthy Rich: Cattle Drive
Filthy Rich: Cattle Drive is an American reality television program that aired on the E! network in 2005. On E! Australia it aired as Rich Kids: Cattle Drive.-Synopsis:...
in 2005.