Shareholders force Yahoo board shake up

Herald Globe Wednesday 8th February, 2012

SAN FRANCISCO - Yahoo's chairman and three other board members have decided not to stand for re-election, giving in to the demands of its shareholders frustrated over the Internet company's declining revenue and stock price.

The chairman, Roy Bostock, and three other directors Hewlett-Packard executive Vyomesh Joshi, media investor Arthur Kern and former Walt Disney executive Gary Wilson announced the decision in a letter to shareholders saying their mover was "to accelerate the company's transformation".

"Mr Joshi, Mr Kern, Mr Wilson and I have volunteered not to stand for re-election at the next shareholders' meeting," Bostock said in the letter.

"The combination of a new chief executive officer (ex-PayPal president Scott Thompson) with an enhanced team of independent directors would provide Yahoo! with the expertise and perspectives necessary to drive innovation and growth going forward."

But Bostock, who joined Yahoo's board in 2003, will remain chairman until the annual meeting, expected by March end. It will launch a search to fill the other vacancies soon.

Yahoo also announced Tuesday that it has appointed former Rovi Corp CEO and International Business Machines Corp veteran Alfred Amoroso and ex-eBay COO Maynard Webb as its new independent directors.

Yahoo board has come under severe criticism from investors who blame its directors for the downfall of the corporation that was once a web powerhouse but is now struggling to revive flagging growth.

Yahoo has also struggled to keep up with rivals like Facebook and Google. It recently appointed Scott Thompson as its new CEO, the fourth in five years.

Thompson will fill the vacancy left by Carol Bartz, who was dismissed as chief executive in September. Last month, Jerry Yang, Yahoo's co-founder, resigned from its board.