This is shareholder activism at its most democratic level.
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Congratulations Mr. Jackson, you are my new investing hero. Now if only you had $37 billion to commit to philanthropy.
The seven point plan is very reasonable. Mr. Jackson even proposes creating the plan in a wiki . That may be a bit far-fetched as an idea but I support his radical idealism. You never know what kind of shareholder democracy, added value and profits to shareholders may ensue.
1. Appoint Susan Decker CEO immediately; implement pay-for-performance for all YHOO execs going forward.
2. Restructure the board immediately with more active outside directors who own stock; 10 year term limits for directors should also be introduced.
3. Set up a special committee of the board to study and then articulate the company's vision/strategy and start executing it.
4. Step up the pace of the $3B stock repurchase plan announced in October 2006.
5. Begin a cash dividend immediately.
6. Reduce overlapping internal divisions (e.g., del.icio.us/MyWeb, Flickr/MyPhotos.)
7. Remove anti-takeover provisions which are not shareholder-friendly.
My take on his plan:
1. Why Susan Decker as CEO? I would want to know what he means by pay for performance. He should probably explain that. I hope it has earnings and cash flow targets instead of just share price.
3. More Board involvement is better.
5. Dividends instill discipline on management. But a small dividend. This company still needs to invest cash in growth.
6. Why has this taken so long?
7. Always a good idea.
I plan to support the proposal with my shares. I agree with most points and I'm happy to support the little guy.
Disclosures and Confessions: I own Yahoo and plan to pledge my shares to the campaign. However, if the shares rise above $35 I'm likely to start selling. I'm short Jan 2008 35 strike calls against half my position of YHOO and am also short Jan 2008 30 strike puts. I like Yahoo!. I use their email and use MyYahoo as my homepage. I make extensive use of Yahoo Finance . I also like their newsreader in yahooMailBeta. I also own Mr. Buffet's company Berkshire Hathaway (BRK.A).
YHOO 1-yr chart: