Yahoo investor seeks to replace firm’s entire board

Yahoo investor Starboard Value has nominated nine directors to replace the entire board at the struggling web portal, which it contends has been mismanaged under CEO Marissa Mayer.

Yahoo investor seeks to replace firm’s entire board

Starboard, a long-time critic of the company and an activist shareholder with a 1.7% stake, nominated its chief executive, Jeffrey Smith, among others for election at Yahoo’s annual meeting later this year, according to a letter to shareholders.

With little progress to show for her revival efforts after more than three years, investors are losing patience with Ms Mayer, who has presided over sluggish sales growth and failed to separate Yahoo’s main web business from its multibillion-dollar stake in Alibaba Group.

Starboard first began to call for changes in 2014 and recently stepped up criticism of management, even as Yahoo said it would consider alternatives, including the sale of the company’s core operations.

“We have been extremely disappointed with Yahoo’s dismal financial performance, poor management execution, egregious compensation and hiring practices, and general lack of accountability and oversight by the board,” Starboard said yesterday in a letter to shareholders.

“We believe the board clearly lacks the leadership, objectivity, and perspective needed to make decisions that are in the best interests of shareholders.”

Yahoo said that it “noted” Starboard’s announcement regarding the board nominations.

The board’s nominating and governance committee will review the nominees and respond “in due course”, Yahoo said in a statement.

For Ms Mayer, who sits on the board, it is another difficult step in her tenure that began as a turnaround effort when she arrived in July 2012.

In February, she rolled out her latest plan to overhaul the company, calling for employee cuts, product closures and other reductions to help drive efficiency and focus on growth opportunities.

Starboard is one of the most prolific US activist investors and has a track record of successfully pushing companies to heed its wishes.

* Bloomberg

More in this section

Budget 2022 Logo

What impact will this  year's budget have on you and your business.

IE logo
Devices


UNLIMITED ACCESS TO THE IRISH EXAMINER FOR TEAMS AND ORGANISATIONS
FIND OUT MORE

The Business Hub
Newsletter

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Sign up
Puzzles logo
IE-logo

Puzzles hub

Visit our brain gym where you will find simple and cryptic crosswords, sudoku puzzles and much more. Updated at midnight every day. PS ... We would love to hear your feedback on the section right HERE.

Lunchtime
News Wrap

A lunchtime summary of content highlights on the Irish Examiner website. Delivered at 1pm each day.

Sign up
Revoiced
Newsletter

Some of the best bits from irishexaminer.com direct to your inbox every Monday.

Sign up