Did Semel’s Option Grant Cause YHOO To Miss?

Posted: April 19, 2007 in Uncategorized
Looks like there was $39.4 million in G&A option related expenses at YHOO this quarter.
If past awards are an indication, I think the bulk of these go to Terry Semel, YHOO’s CEO.
Assuming (for sake of this observation) that they all went to him… and adding that $39.4 million back to the net income figure… and assuming the total dilution doesn’t change (which of course it would)… and adjusting for the tax consequence…
…then I’m calculating about a 12 cent gain instead of a 10 cent gain… which would have beat consensus of 11 cents… and possibly avoided yesterday’s blood bath.
But, I don’t know if I’m actually doing this calculation correctly.  And, I can’t remember if companies are reporting with or without these figures these days. 
So, I’ll dig around to find these answers.
First blush, though, it looks like Semel’s option package all by itself knocked off about $5.4 billion in YHOO shareholder value yesterday.

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