Wednesday, August 6, 2008

Yahoo's 'Hanging Chad'

The final result stands but the credibility of Yang and Bostock weakened by the recount. Under ordinary circumstances, such error-corrections are footnotes and not news. But, Yahoo's Aug 1 meeting was supposed to be anything but ordinary. With Icahn and Yahoo settling beforehand, the meeting was supposed formality of re-electing the Board without much fanfare.
So what happened after the recount? Yang got 65% instead of 85%. Bostock got 60% instead of 80%. While both got re-elected, they hardly got the mandate to lead Yahoo with strong support from the shareholders. What Yang and Bostock needed on August 1 was a mandate and endorsement from the shareholders to lead Yahoo in the coming months and years. The recount puts further pressure on Yahoo to come up with a credible strategic plan and execute it to unleash shareholder value--a tall challenge given the stock is hovering around $20.
Time to focus on the future and regain shareholder credibility.

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