Bartz's appointment, confirmed earlier this week, is seen paving the way for the Internet company to make decisions on major issues including a sale or search deal with Microsoft Corp.

Yahoo will pay Bartz an annual base salary of $1 million, as well as a $10 million equity-and-cash payment to make up for benefits that she will forfeit from her previous employer Autodesk Inc, according to its filing with the US Securities and Exchange Commission. She will also receive an annual equity grant, which in 2009 will be around $8 million to be granted in February, it said.

Bartz will also receive stock options for 5 million Yahoo shares, with a strike price to be determined on Jan. 30. She is not allowed to exercise the options until the end of a four-year agreement, and they will only begin to vest when the share price is increased by 50 percent for a minimum of 20 consecutive trading days, the company said. The new CEO also is eligible for a yearly bonus of around $2 million to as much as $4 million.