Yahoo! Executive Incentive Plan

Exhibit 10.13

Yahoo! Executive Incentive Plan

Yahoo! EIP

I. Introduction

A. Applicability

B. Objectives of the EIP

II. EIP Elements

A. Target Awards

A target cash bonus award (“Target Award”) will be established for each Participant. Target Awards are determined by position level and will be typically expressed as a percentage of a Participant’s annual base salary rate as of the last day of the applicable fiscal year, where such salary rate does not include other forms of compensation (such as, without limitation, expense reimbursements, superannuation, bonus payments, long-term incentives, overtime compensation, and other variable compensation). Target Awards may also be a specified fixed dollar (or local currency) amount.

Target Awards for Executive Officers may be reviewed and revised in the sole discretion of the Compensation Committee. Target Awards for other Participants may be reviewed and revised in the sole discretion of the CEO or his or her designee.

This EIP and Target Awards do not constitute a guarantee of or entitlement to a bonus payment. A Participant’s actual bonus payment may vary from his or her Target Award.

February 2011

2

Yahoo! EIP

B. EIP Bonus Pool Funding

Individual Target Awards will be aggregated to determine the Company’s target bonus pool (the “Target Bonus Pool”) for the applicable fiscal year. The actual EIP bonus pool (the “EIP Bonus Pool”) for the applicable fiscal year may vary from 50% to 200% of the Target Bonus Pool for that year based on the Company’s achievement of performance goals established by the Compensation Committee for the applicable fiscal year, such performance goals to be established not later than ninety (90) days after the start of the fiscal year. The methodology to determine the EIP Bonus Pool is set forth in Appendix A attached hereto.

C. EIP Bonus Pool Allocation and Individual Awards

Allocation of the EIP Bonus Pool among the Participants in a particular fiscal year will be determined based on a combination of Company performance and individual performance. Payout of seventy percent (70%) of each Participant’s EIP Target Award will be determined based on the Company’s achievement of performance goals established by the Compensation Committee for the applicable fiscal year. The remainder of a Participant’s EIP bonus will be determined based on the Participant’s individual performance and relative contribution as determined by the CEO or his or her designee (or by the Compensation Committee in the case of Executive Officers) in his/her or its sole discretion.

The calculation of a Participant’s EIP bonus will be made in conjunction with the Company’s year-end review process for the applicable fiscal year, which shall occur in the first quarter of the following fiscal year and follow the process below.

Step 1: Determine the total EIP Bonus Pool as described in Section B.

Step 2: Determine the portion of the EIP Bonus Pool payable to each Participant for Company performance:

Step 3: Determine the portion of the EIP Bonus Pool payable to each Participant for individual performance.

Step 4: Calculate the total EIP bonus to be paid to each Participant:

The CEO or his or her designee shall determine the EIP bonus for the non-Executive Officer Participants. The Compensation Committee shall determine the EIP bonus for Executive Officers.

February 2011

3

Yahoo! EIP

The aggregate total of bonuses payable to all Participants under this Plan for a particular fiscal year shall not exceed the EIP Bonus Pool determined as described in Section B above for that year.

Any EIP bonus payable to a Participant under this Plan shall not be considered as “salary” in any circumstance and shall not be included in calculations for overtime pay, retirement benefits, severance, or any other benefits under any applicable plan, policy, agreement or applicable law.

III. TERMS AND CONDITIONS

A. EIP Effective Period

Each fiscal year covered by this Plan is the period from January 1 to December 31 of the applicable fiscal year. This EIP supersedes all previous executive cash incentive plans, management incentive plans (MIP), or leadership bonus plans and agreements and all other previous or contemporaneous oral or written statements by the Company on this subject.

B. Date for Incentive Payments

EIP bonuses paid under this Plan are not earned until paid and in all events remain subject to Section III.M. It is a condition for EIP eligibility that Participants must be employed, and to the extent permitted by applicable law, not under notice of termination given by the Company or the Participant (if applicable), on the payment date of the EIP bonuses (except as otherwise provided in Section I – Terminations of Employment). Payment will not occur until after financial results for the applicable fiscal year are determined by the Company and the year end review process for the applicable year is completed.

C. Form and Timing of Payment

If the conditions for payment described above are met, the EIP bonus will be payable in a lump sum cash payment (in local currency), subject to required payroll deductions and tax withholdings no later than March 15 of the year following the end of the applicable fiscal year (except that, in the case of Participants not on the United States payroll of the Company at the start of the applicable fiscal year and who are not added to the United States payroll of the Company during the applicable fiscal year, payment will occur not later than March 31 of the year following the end of the applicable fiscal year).

D. New Hires

If an employee is hired on or before October 1 of the applicable fiscal year into a position that qualifies for the EIP, the employee will participate in the EIP only if the Company notifies the employee in writing that he or she is a Participant under the EIP for that year. The employee’s Target Award amount for the fiscal year may be prorated based on the date of hire.

Employees who are hired after October 1 of the applicable fiscal year will not be considered Participants under the EIP for that fiscal year.

February 2011

4

Yahoo! EIP

E. Transfers

If a Participant transfers from one EIP-eligible position to another during the applicable fiscal year, the following guidelines may apply:

The Compensation Committee with respect to Executive Officers (and the CEO or his or her designee with respect to non-Executive Officers) has the sole discretion to pro-rate, reduce, offset, or eliminate EIP bonuses to account for advances or payouts to employees under other bonus plans in effect during the same fiscal year, or for other reasons as it deems appropriate.

F. Promotions into EIP-Eligible Positions

If a Participant is promoted from one EIP-eligible position to another during the applicable fiscal year, the payouts will be administered the same as described above for Transfers. If an employee is not in a position that is eligible for the EIP and is promoted to an EIP-eligible position during the applicable fiscal year, the Compensation Committee or the CEO or his or her designee as applicable, may select the employee for participation in the EIP by notifying the employee that he or she is a Participant under the EIP. The employee’s Target Award amount for the fiscal year shall be prorated based on the date of the promotion.

G. Adjustments to Target Awards

The Compensation Committee in its sole discretion can approve adjustments to Target Awards for Executive Officers during the applicable fiscal year. The CEO or his or her designee in his or her sole discretion may approve adjustments to Target Awards for other Participants during the applicable fiscal year. Any such changes will be communicated to the Participant in writing. Any payout amount may be prorated based on the effective date of the change to the Target Award as determined by the Compensation Committee or the CEO or designee thereof, as applicable. Any adjustment to a Target Award will result in a corresponding adjustment to the Target Bonus Pool.

February 2011

5

Yahoo! EIP

H. Leaves of Absence and Part-Time Employees

To the extent permitted by applicable law, the amount of the EIP bonus may be prorated for Participants who have been on an approved leave of absence of more than 90 days during the fiscal year and for Participants who work less than full-time.

I. Terminations of Employment

To the extent permitted by applicable law, and except as otherwise approved by the Compensation Committee (or the CEO in the case of non-Executive Officer Participants), Participants whose employment is voluntarily or involuntarily terminated (with or without cause) by the Participant or the Company or are under notice of termination given by either party (if applicable) prior to the payment date of the EIP bonus will not be eligible for and shall not receive any EIP bonus.

Participants whose employment terminates due to the employee’s total disability during the applicable year will be eligible for a prorated EIP bonus, based on the date of termination, and paid at the time other EIP bonuses are paid under the EIP, to the extent permitted by applicable law. If a Participant dies during the applicable fiscal year, the EIP bonus will be prorated based on the date of death and paid to the estate of the deceased Participant, at the time other EIP bonuses are paid.

J. EIP Interpretation

The EIP shall be interpreted by the Compensation Committee. The Compensation Committee has the sole discretion to interpret or construe ambiguous, unclear or implied (but omitted) terms and shall resolve any and all questions regarding interpretation and/or administration.

Participants who have issues regarding payments or the administration of the EIP may file a claim in writing to the Compensation Committee, c/o the Secretary of the Company, within 90 days of the date on which the Participant first knew (or should have known) of the facts on which the claim is based. The Compensation Committee or its designee(s) shall consider the claim and notify the Participant in writing of the determination and resolution of the issue. Claims that are not pursued through this procedure shall be treated as having been irrevocably waived. The determination of the Compensation Committee or its designee(s) as to any complaint or dispute will be final and binding and shall be upheld unless arbitrary or capricious or made in bad faith.

The provisions of this EIP are severable and if any provision is held to be unenforceable by any court of competent jurisdiction then such unenforceability shall not affect the enforceability of the remaining EIP provisions.

This Plan shall be construed and interpreted consistent with, and so as to avoid the imputation of any tax, penalty or interest under, Section 409A of the United States Internal Revenue Code of 1986, as amended.

K. Exceptions and Modifications

All exceptions, adjustments, additions, or modifications to the EIP require the written approval of the Compensation Committee, or its designee(s).

This version of the EIP is first effective with respect to 2011. All aspects of the EIP (including, but not limited to, financial targets, Target Awards, performance measures,

February 2011

6

Yahoo! EIP

and funding formulas) may be reviewed and revised at any time without advance notice in the sole discretion of the Compensation Committee.

L. Employment At-Will (U.S. Employees only)

The employment of all Participants in the United States is “at will” and is terminable by either the Participant or Yahoo! at any time, with or without advance notice and with or without cause. This EIP shall not be construed to create a contract of employment for a specified period of time between Yahoo! and any U.S. Participant.

M. Recoupment

Notwithstanding any other provision herein, any recoupment or “clawback” policies adopted by the Compensation Committee and applicable to incentive awards shall apply to this EIP and any bonuses paid or payable under this EIP to the extent that the Compensation Committee designates the policy as applicable to this EIP and any such bonuses at the time the policy is adopted.

[signature page follows]

February 2011

7

Yahoo! EIP

N. EIP Acknowledgement

By signing below, the Participant acknowledges that the Participant has read, comprehended, and agreed to this EIP and will abide by the guidelines outlined herein for all bonus payments. The EIP sets forth the entire agreement and understanding between the Company and the Participant relating to the subject matter herein and supersedes and replaces any and all prior plans, agreements, discussions and understandings whether oral or written regarding these subject matters including but not limited to any provision regarding cash incentive plan compensation contained in a Participant’s employment agreement, if any.

I have read and understood the provisions of this EIP and hereby agree to and accept its terms:

February 2011

8

Yahoo! EIP

Appendix A - 2011 EIP

For fiscal 2011, the Compensation Committee has approved the following method for determining the EIP Bonus Pool.

Definitions

For purposes of the EIP, the following definitions will apply:

“Ex-TAC Operating Margin” means the Company’s Operating Income divided by Revenue ex-TAC (prior to any adjustments of the MIP funding pool) expressed as a percentage.

“GAAP” means U.S. generally accepted accounting principles.

“Microsoft Transition” means the global transition of the Company’s algorithmic and paid search platforms and migration of the Company’s paid search advertisers and publishers to Microsoft Corporation (“Microsoft”) under the Search Agreement based on the Company’s timetable and operational plans as of the date of the Plan.

“Operating Income” as to a particular fiscal year means the Company’s income from operations for that fiscal year as determined by the Company in accordance with GAAP and reflected in its annual financial statements.

“Plan” as to a particular fiscal year means the Company’s financial plan for that fiscal year used by the Compensation Committee to set the Revenue ex-TAC Growth Rate and Ex-TAC Operating Margin targets for that fiscal year.

February 2011

9

Yahoo! EIP

“Revenue” as to a particular fiscal year means the Company’s revenue for that fiscal year as determined by the Company in accordance with GAAP and reflected in its annual financial statements.

“Revenue ex-TAC” as to a particular fiscal year means Revenue less TAC as determined by the Company and reflected in the Company’s annual financial statements.

“Revenue ex-TAC Growth Rate” as to a particular fiscal year means (a) the difference between that fiscal year’s Revenue ex-TAC and the Revenue ex-TAC for the immediately preceding year, divided by (b) Revenue ex-TAC for the preceding year.

“Search Agreement” means the Search and Advertising Services and Sales Agreement between the Company and Microsoft.

“TAC” as to a particular fiscal year means total traffic acquisition costs as determined by the Company and reflected in its annual financial statements.

For purposes of calculating Revenue ex-TAC and Ex-TAC Operating Margin for a particular fiscal year, the Revenue ex-TAC and Ex-TAC Operating Margin for that year shall be adjusted (without duplication) for the following items to the extent such items were not included in the Plan:

February 2011

10

Yahoo! EIP

February 2011

11

Yahoo! EIP

Exhibit 1 – EIP Pool Funding Methodology

Revenue

Ex-TAC

Growth%

Revenue

0% - 3% Rev.ex-TAC outperformance

+2% for each 1% revenue outperformance

>3.0% - 7.0% Revenue ex-TAC outperformance

+3% for each 1% revenue outperformance

>7.0% + revenue outperformance

+4% for each 1% revenue outperformance

Operating Margin

-2% penalty for each 10bp mission OM%

Revenue

0% - 3% Rev.ex-TAC outperformance

+3% for each 1% revenue outperformance

>3.0% - 7.0% Revenue ex-TAC outperformance

+5% for each 1% revenue outperformance

>7.0% + revenue outperformance

+8% for each 1% revenue outperformance

Operating Margin

No funding adjustment for OM outperformance

2011

Financial Plan Targets

Ex-TAC

Operating Margin%

Revenue

-5% penalty for each 1% Rev.ex-TAC underperformance

Operating Margin

-2% penalty for each 10bp mission OM%

Revenue

-5% penalty for each 1% Rev.ex-TAC underperformance

Operating Margin

No funding adjustment for OM outperformance

200% Maximum Pool Funding / 50% Minimum Pool Funding

Yahoo! EIP

Exhibit 2 - EIP Funding Matrix

Ex-TAC Operating Margin

Revenue ex-TAC Growth Rate

-5.5% -5% -4% -3.5% -3% -2.5% -2% -1.5% -1% -0.5% Target +0.4% +1% +1.5% +2% +2.5% +3% +3.5% +4% +13% 50% 52% 72% 82% 92% 102% 112% 122% 132% 142% 200% 200% 200% 200% 200% 200% 200% 200% 200% +12% 50% 50% 68% 78% 88% 98% 108% 118% 128% 138% 196% 196% 196% 196% 196% 196% 196% 196% 196% +11% 50% 50% 64% 74% 84% 94% 104% 114% 124% 134% 188% 188% 188% 188% 188% 188% 188% 188% 188% +10% 50% 50% 60% 70% 80% 90% 100% 110% 120% 130% 180% 180% 180% 180% 180% 180% 180% 180% 180% +9% 50% 50% 56% 66% 76% 86% 96% 106% 116% 126% 172% 172% 172% 172% 172% 172% 172% 172% 172% +8% 50% 50% 52% 62% 72% 82% 92% 102% 112% 122% 164% 164% 164% 164% 164% 164% 164% 164% 164% +7% 50% 50% 50% 51% 61% 71% 81% 91% 101% 111% 135% 135% 135% 135% 135% 135% 135% 135% 135% +6% 50% 50% 50% 50% 58% 68% 78% 88% 98% 108% 130% 130% 130% 130% 130% 130% 130% 130% 130% +5% 50% 50% 50% 50% 55% 65% 75% 85% 95% 105% 125% 125% 125% 125% 125% 125% 125% 125% 125% +4% 50% 50% 50% 50% 52% 62% 72% 82% 92% 102% 120% 120% 120% 120% 120% 120% 120% 120% 120% +3% 50% 50% 50% 50% 50% 56% 66% 76% 86% 96% 109% 109% 109% 109% 109% 109% 109% 109% 109% +2% 50% 50% 50% 50% 50% 54% 64% 74% 84% 94% 106% 106% 106% 106% 106% 106% 106% 106% 106% +1% 50% 50% 50% 50% 50% 52% 62% 72% 82% 92% 103% 103% 103% 103% 103% 103% 103% 103% 103% Target 50% 50% 50% 50% 50% 50% 60% 70% 80% 90% 100% 100% 100% 100% 100% 100% 100% 100% 100% -1% 50% 50% 50% 50% 50% 50% 55% 65% 75% 85% 95% 95% 95% 95% 95% 95% 95% 95% 95% -2% 50% 50% 50% 50% 50% 50% 50% 60% 70% 80% 90% 90% 90% 90% 90% 90% 90% 90% 90% -3% 50% 50% 50% 50% 50% 50% 50% 55% 65% 75% 85% 85% 85% 85% 85% 85% 85% 85% 85% -4% 50% 50% 50% 50% 50% 50% 50% 55% 60% 70% 80% 80% 80% 80% 80% 80% 80% 80% 80% -5% 50% 50% 50% 50% 50% 50% 50% 50% 55% 65% 75% 75% 75% 75% 75% 75% 75% 75% 75% -6% 50% 50% 50% 50% 50% 50% 50% 50% 50% 60% 70% 70% 70% 70% 70% 70% 70% 70% 70% -7% 50% 50% 50% 50% 50% 50% 50% 50% 50% 55% 65% 65% 65% 65% 65% 65% 65% 65% 65% -8% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 60% 60% 60% 60% 60% 60% 60% 60% 60% -9% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 55% 55% 55% 55% 55% 55% 55% 55% 55% -10% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50%

February 2011 12