Former Oath and AOL CEO Tim Armstrong is getting a $60 million payout
- Former AOL CEO Tim Armstrong is getting a $60 million payout package from Verizon.
- The so-called golden parachute follows Armstrong's departure from the company in October, and comes after Verizon wrote down about about half of Oath's $9 billion value.
- The integration of AOL and Yahoo has never been on solid footing and Verizon is now taking a new direction with its recently re-named Verizon Media Group.
Tim Armstrong, the former CEO of AOL and later Verizon's media and advertising business, Oath, is getting a $60 million payout package from Verizon, The Wall Street Journal reported on Tuesday.
The so-called golden parachute follows Armstrong's departure from the company in October, and includes $31.1 million founders award and $16.6 million he's expected to get in June, according to The Journal.
The Oath business unit, now called Verizon Media group, formed as a combination of technology and media assets gained through a 2015 AOL acquisition and a 2017 Yahoo acquisition, and has seen seismic changes in its roughly one year of existence.
Verizon wrote down about half of Oath's roughly $9 billion value in the fourth quarter of 2018, citing competitive pressures in the digital ad business and an integration between Yahoo and AOL that never achieved the benefits Verizon anticipated.
The integration of AOL and Yahoo has never been on solid footing as a result of this high employee turnover, according to former Oath employees who spoke with Business Insider.
Before that, the leadership in place at the company was a revolving door of executives, with three CFO changes and other leadership positions left vacant. Armstrong had been at Verizon since it acquired AOL and helped shepherd the acquisition of Yahoo, and was replaced Guru Gowrappan, the former Oath president and chief operating officer.
In November, Verizon CEO Hans Vestberg reorganized the business that was split between wireless and wireline businesses and created three main business segments: Verizon Consumer Group, Verizon Business Group, and Verizon Media Group. The company has announced that 10,400 employees have accepted buyout packages and will leave the company in 2019.