Yahoo CTO Steps Down

May.31.07 | About: Yahoo! Inc. (YHOO)

Yahoo (NASDAQ:YHOO) CTO Farzad Nazem has resigned. In an SEC filing Thursday, Yahoo said Nazem has resigned as chief technology officer effective June 8.

His termination letter can be found on the SEC site. The resignation of Nazem, which seems to be on friendly terms, is a blow to a company that just solidified its management team by adding Blake Jorgensen as the new chief financial officer. The hiring of Jorgensen allowed Susan Decker to expand into more of an operating role.

Nazem had been Yahoo’s CTO since 1998 and was prominent in the company’s management restructuring.

According to Yahoo it will pay Nazem’s 2007 salary in a lump sum. Meanwhile, many Nazem’s options will vest when he leaves. He has three years to exercise other options from earlier grants.

In 2006, Nazem’s total compensation came to $12.4 million. His salary was $479,167, according to Yahoo’s most recent proxy filing. Nazem had more than 18 million shares subject to past option grants. As of April 1, 2007 Nazem had $1.65 options that were exercisable and roughly an equal amount that were unexercisable.