BookWatch: This former CEO wants a luxury tax on CEO pay

Marissa Mayer will pocket $186 million when Verizon completes its acquisition of Yahoo, epitomizing corporate America’s affinity for paying CEOs for luck.

Yahoo’s core business stagnated under her leadership. However, she inherited Yahoo’s investment in Alibaba, China’s e-commerce colossus. The increasing value of Alibaba BABA, +0.29% caused Yahoo stock YHOO, +0.14% to double over her five-year tenure. Hence she deserves $186 million, because CEOs get paid for performance.

The average Fortune 500 CEO makes over $20 million a year. This is roughly 300 times what the average employee makes — and this excludes the CEO’s gains on stock options.

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