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Uber Technologies Inc.’s new chief executive officer likely comes with a price tag in the neighborhood of $200 million.
Dara Khosrowshahi, who spent 12 years at the helm of Expedia Inc., held unvested stock options in that company worth $184.4 million as of Friday’s close in New York, according to data compiled by Bloomberg. Companies typically grant replacement awards to executives who must forfeit unvested equity when they leave before their employment terms have expired.
The ride-hailing company will likely also grant Khosrowshahi additional compensation, such as an annual salary and stock awards that vest over several years to ensure he remains on the job for the forseeable future. That could push his total price tag north of $200 million.
“You combine a rock star CEO with a turnaround-like scenario and you can basically assume the number is going to be stratospheric,” said Aalap Shah, managing director at Pearl Meyer, an executive compensation consulting firm, who wasn’t involved in the hire. “I don’t think they are going to get him for any kind of bargain. This is a situation where the next CEO is going to make or break this company.”