Tim Armstrong , one-time Google executive and former CEO of AOL and its heir , Verizon ’s troubled , digital media - center Oath group , departed Verizonin 2018 just calendar month before the corporation drive a$4.5 billion accounting chargeon Oath . According to a Tuesday report in theWall Street Journal , he ’s walking away with a astonishing $ 60 million - plus payout .
The Journal wrote that most of that golden chute comes from fairness he was grant when Verizonbought AOL in 2015for $ 4.4 billion , a decision the company now probably regrets . The rest of the muckle comes from executive pay and severance , the paper report :
The hard currency and stock awards and other benefit , patch together from disclosures in a security filing late Monday , are a compounding of Mr. Armstrong ’s 2018 compensation , severance and a special incentive package that Verizon granted Mr. Armstrong when it purchase AOL in 2015 .
… Most of Mr. Armstrong ’s recompense for 2018 and 2019 add up from a so - called laminitis equity award he was accord when Verizon bought AOL . The first part vest last fountain and the end is position to vest in coming month , according to regulatory filings … Mr. Armstrong received $ 31.1 million from the founding father award last year and stands to get another $ 16.6 million in June if the value of the media group is unaltered from the end of 2018 , a Verizon spokesman said . In all , he would get about 80 % of the beginner award .
In the year 2000 , AOL agreed to bribe Time Warnerfor $ 165 billion . Shortly afterArmstrong joined the fellowship in 2009 , it was Time Warner spin off AOL , withReuters reportingthat the AOL ’s market capitalization had plunged to a sorry $ 3.44 billion .
In 2011 , leaked document testify that Armstrong was labor a massive increase in content quotas on editorial staff , with one of those stafferstelling Business Insiderthat AOL was “ the most fucked - up , horseshit society on earth . ” In 2014 , Armstrongwas to a great extent criticizedfor charge the mad babies of two AOL staff member for increasing health upkeep toll at the company . In early 2015,Quartz reportedthat a substantial luck of its stage business still relied on revenue from legacy customers who were still ante up fordialup cyberspace service . However , Wired notedits advertising commercial enterprise was beginning to acquire promptly .
As CNN noted , Oath never really did anything to challenge the Facebook - Google online ad duopoly . By belated 2018 , there were rumors that Verizon had consideredspinning off the unit entirely , its streaming video ventureshad failed , and theWashington Post reportedthat its contribution of the digital advert grocery was shrinking as Amazon and Snap Inc. ’s share grew . After announcing the multi - billion - dollar writedown , the unit begin set off around7 percent of its staff .
Verizon has since announced it design to focus on wireless technology , rather than its media holdings .
[ Wall Street Journal ]
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