Yahoo's Bartz has a big brass ring

It was a kinda blase day for Yahoo's approaching capital soprano Friday. It didn't shoot to the moon on the latest Microsoft takeover gossip, nor crater to the Earth's core on fears that the software giant is never coming back in some shape or form .

But, nonetheless, Yahoo's newly minted CE O, Carol Bartz, was likely taking notice. Her possibility fortune is tied to Friday's concluding stock price.

Bartz, under her compensation package, is eligible to reap the rewards of 5 million stock o ptions, which carry an exercise price based on Friday's close of $11.73 a portion.

There's a catch, however.

Bartz's shares won't begin to vest unless Yahoo's stock rises by a minimum of 150 percent above the exercise price. That means Yahoo's stock needs to climb to $29.33 a share and maintain that average closing price for 20 consecutive trading days, in order for Bartz to vest a tierce of the 5 million shares.

And she needs to do this by January 1, 2013, or every 5 million options go poof.

If Bartz containerful hurdle the first leg of the Yahoo vesting contend, she could find herself holding 1.67 million options with a value of roughly $48.9 million.

Potentially, there is even more to come.

Here 's how Bartz can advance the sleep of the 5 million options. The methodology remains largely the same, except for the percentage increase required and number of shares that vest:

•175 percent increase, product hits $32.26 a share, one-sixth of options vest.

•200 percent increase, stock hits $35.19 a share, one-sixth of options vest.

•225 percent increase, stock hits $38.12 a share, one-twelfth of options vest.

•250 percent increase, stock hits $41 .06 a share, one-twelfth of options vest.

•300 percent increase, stocks hits $46.92 a share, one-sixth of options vest.

Compensation experts note Yahoo's stock option incentive is kinda rare. Usually, options for CEOs vest over rea ding and by achieving certain performance metrics. In Bartz's case, however, the 5 million shares are based solely on Yahoo's stock price appreciating over the succeeding four years.

This type of options package ties Bartz's good fortune directl y with that of Yahoo investors.

And given that the company now has shareholder activist Carl Icahn on its board, the chances of Bartz later getting her options re-priced at a lower strike price are slim to none.

Cheers~