Mayer will be paid a base salary of $1 million and will receive up to $12 million that will be vested over the coming three years, according to a filing with the US Securities and Exchange Commission.
The 37-year old who assumed the new position on July 17, will be getting an incentive of 200 per cent of her base salary and a maximum of 400 per cent if she exceeds her targets this year -- that could bring in between $2 billion and $4 billion more per year.
Mayer, who replaced Yahoo! acting Chief Executive Ross Levinsohn will also receive $14 million worth of stock as a partial compensation for forfeiting the money she would have received at Google.
After a 13-year stint, Mayer left Google to join Yahoo! on July 17. The filing further noted that she will receive a retention equity award worth $30 million of stock and stock options if she stays at Yahoo! for the next 5 years.
Yahoo!'s previous CEO, Scott Thompson, had a $27 million pay package. Thompson stepped aside in mid-May amid an uproar over misleading information on his resume. After the end of this year, Mayer will also be eligible to enjoy benefits like 20 days of vacation annually.
She joined Google in 1999 as its 20th employee and was responsible for some of the iconic local and geographical products including Google Maps, Google Earth, Zagat and Street View.
The internet company has been struggling in the view of stiff competition from rivals like Google and Facebook. Yahoo! has appointed five chief executives, including two interim CEOs in less than a year.
Yahoo! reported a marginal decline of 4.2 per cent in net income at $228.4 million for the April-June period this year.