Add Jeremy Stoppelman, chief executive of business reviews site Yelp, to the list of CEOs who are willing to work for $1.
Stoppelman will take a $1 base salary for 2013, according to information in Yelp’s 8-K document filed today with the Securities and Exchange Commission. The itsy-bitsy take-home pay makes Stoppelman just like Steve Jobs and Mark Zuckerberg, who have also preferred to work for just a buck.
Both Stoppelman and Chief Operating Officer Geoff Donaker reduced their base salaries to $1 for 2013. Stoppelman’s 2012 salary was $300,000, according to public documents. The Yelp CEO made $220,000 in 2009, 2010, and 2011.
Of course, Stoppelman isn’t working for free. Far from it. The chief executive’s real payment for 2013 consists of 665,000 options that will vest at different rates.
One-twenty-fourth of the 90,000 options Stoppelman was granted will vest each month for the next two years, which works out to be a relatively generous vesting schedule. When all 90,000 of those shares vest in 2 years, they’ll be worth around $2 million, should Yelp’s stock price remain stable.
Yelp’s value, however, is a huge variable as share prices have bounced around between $14 and $32 a share since the company’s initial public offering 11 months ago. Just this week, the reviews business bummed out investors when it reported a net loss of $5.3 million for the fourth quarter. Yelp’s share price took an instant hit but recovered to close today at $21.85 a share.