Yahoo! Inc. (YHOO) shareholder Third Point LLC will nominate four directors to the company’s board because a recent overhaul, including the departure of co-founder Jerry Yang, didn’t go far enough to assuage concerns about the company’s growth prospects.
Third Point, which has been critical of the board, said the company should add Daniel Loeb, chief executive officer and founder of Third Point, Harry Wilson, CEO of Maeva Advisors LLC, Michael Wolf, CEO of Activate Inc., and Jeffrey Zucker, former CEO of NBC Universal, according to a regulatory filing today.
“The recently announced changes do not put the issuer on the right track towards maximizing shareholder value,” Third Point said in the filing. “Installing the hand-picked choices of the current board does nothing to allay investor fears that Yahoo is poised to repeat the errors of its past.”
Third Point said that while the newly appointed directors Fred Amoroso and Maynard Webb have some technological expertise, the board needs to do more to address the company’s future.
Yahoo, owner of the largest U.S. Web portal, began a strategic review after it fired its CEO, Carol Bartz, in September. The company, now under the leadership of Scott Thompson, last week said Chairman Roy Bostock and three others would not stand for re-election as directors.
The new board envisioned by Third Point would include its nominees and other Yahoo directors. It would exclude Patti Hart, head of the nominating and corporate governance committee, the recently appointed directors and the members planning to exit, according to the filing.
Yahoo, based in Sunnyvale, California, fell 4.7 percent to $15.37 as of 4 p.m. New York time.
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