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Jun. 18, 2007

Yahoo CEO Terry Semel just resigned as chief executive officer today, and will hand over the reins to co-founder Jerry Yang in the company's latest attempt to regain much-needed investor confidence.

However, Yahoo's board said that Semel will remain chairman in a non-executive capacity.

Besides naming Yang as its new CEO, Yahoo appointed Susan Decker as its president. Some observers had expected that.

Decker, who had been recently promoted to oversee Yahoo's advertising operations, had widely been seen as Semel's heir apparent.

Yahoo announced the shake-up less than a week after Semel, 64, faced off with shareholders disillusioned with Yahoo's lackluster performance during the past year-and-a-half — a malaise that wasn't reflected in Semel's compensation.

Despite the company's struggles, Semel received a package valued at $71.7 million in 2006. That was more than any other CEO among 386 publicly held companies covered in an Associated Press analysis of executive compensation using new SEC disclosure rules.

Semel assured Yahoo's shareholders attending its annual meeting last week that he had the fortitude to lead a comeback.

Semel has been counting on recent improvements to Yahoo's online advertising system, Panama, and a series of key partnerships to bolster profits after the company suffered an 11 percent drop in its first-quarter earnings earlier this year.

However, in a statement today, Semel did say he had already told the board that he wanted to step away "sooner rather than later." To many people, Semel's resignation was expected.

Semel said "this is the time for new executive leadership, with different skills and strengths, to step in and drive Yahoo to realize its full potential. It's now the right thing to do, and the right time is now."

Yahoo shares gained 81 cents to finish at $28.12 Monday, then surged $1.11, or nearly 4 percent, in the extended session. Overall, the company's stock price has plunged nearly 30 percent since the last two years.

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Source: Yahoo News