The activist hedge fund Starboard Value, Yahoo’s largest shareholder, has called for the replacement of the company’s entire board.
In a letter to Yahoo, Starboard gave notice of their intention to seek the election of nine highly qualified director nominees at the 2016 Annual Meeting, citing Yahoo’s “dismal financial performance” as a reason for the overhaul. It continued:
“We have been extremely disappointed with Yahoo’s dismal financial performance, poor management execution, egregious compensation and hiring practices.”
In response, Yahoo agreed to “review Starboard’s proposed director nominees and respond in due course.”
The company, led by CEO Marissa Mayer, has gone through some troubled time of late, recently announcing their intention to cut 15% of its workforce as it pursued an “aggressive strategic plan” to return to profitability.
Shares in Yahoo (NASDAQ:YHOO) are down 0.37 percent on the news, at 34.67 (1530GMT).
24/03/2016
