Yahoo shareholders voted in the company's board of directors at Tuesday's annual meeting, but expressed their discontent by giving the slate only 66% of the vote against last year's 97%. Yahoo stock has fallen 10% over the past year while the Nasdaq index has gained 25%. The company has been increasingly left behind by rival Google, whose stock is up 30% over the past 12 months. Adding insult to injury, the board approved very generous compensation packages for senior executives last year, including CEO Terry Semel, who received $71.7 million -- more than any other CEO of an S&P 500 company. "I was extremely pleased with the results," said activist shareholder Eric Jackson. "My hope is this is going to break the logjam, and there are going to be some changes on the board and some positive changes that help the company." Jackson, who owns only 100 shares of Yahoo, has put together a group of shareholders who collectively hold 2 million shares. The group has used blogs, videos and wikis to promote a "Plan B" for Yahoo. At the meeting, Semel said he had not yet reviewed the plan, which Jackson submitted to the company in February.
Sources: Wall Street Journal, TheStreet.com, Mercury News
Commentary: Yahoo Shareholder Meeting: Tuesday of Discontent • Eric Jackson Prepared to Shake Things Up at Yahoo's Shareholder Meeting • Yahoo Investors, Partners and Customers Getting Nervous
Stocks/ETFs to watch: Yahoo! Inc. (YHOO). Competitors: Google Inc. (GOOG). ETFs: Internet HOLDRs (HHH), First Trust Dow Jones Internet Index (FDN)
Conference call transcripts: Q1 2007
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