Marissa Mayer poses at Google's Mountain View, California headquarters, in this February 24, 2009 file photo. Mayer, who at the time served as Google's vice president of Search Products & User Experience, was named as Yahoo's CEO in a surprise announcement on July 16, 2012. Credit: Reuters/Noah Berger/Files
Mayer's pay package is made up of $1 million in
annual salary, as much as $2 million in an annual bonus, and $42 million in stock options and other awards, as well as $14 million in "make whole restricted options" for forfeiture of compensation from Google.
Also, by including some stock grants, Mayer could earn up to a total of $20 million a year, or up to $100 million over five years, a Yahoo spokeswoman said. 
As the first female Google engineer, Mayer's net worth is already estimated at $300 million.
Industry observers believe Mayer's selection over acting CEO Ross Levinsohn is a signal that Yahoo is likely to renew its focus on Web technology and other products.
Her appointment caps a tumultuous year at Yahoo.
In May, Scott Thompson resigned as CEO after less than 6 months in the job after a controversy over his academic credentials.
Thompson replaced the controversial Carol Bartz, who was fired in September after failing to revitalise Yahoo.
Thompson's total compensation at hire was valued at $27 million. He was able to keep the $7 million in compensation he got for leaving Paypal. Bartz got more than $10 million in severance when she was fired last year.
Mayer started as CEO on Tuesday, the same day Yahoo announced weak financial results, with flat net revenue and a slight decline in second-quarter profit.