Yahoo’s CEO Carol Bartz has not bought harmony to the company. Many Yahoo investors are losing interest and hopes over the brand which was once a word that meant Joy and excitement.
Her credibility has been in question since a while. Investors were amazed when she quoted Yahoo was never a search company.
As per the Guardian news
According to regulatory filings, Bartz has made two major stock sales in the past nine months – more than $830,000 (£500,000) in March and a further $1.14m in June.
While executives are entitled to sell the options that they had been given, he said that Bartz was sending the wrong message by exercising so many of her stock options so soon after joining the company.
“Two million already cashed out for Bartz is too much, too soon, doesn’t really fit with her ‘I didn’t need this job as I was retired’ image she portrays” says an investor.
She is entitled with a monthly salary of $1m and her max annual bonus goes upto $4m. In return to the company, she ain’t doing anything positive.
Bartz is not the only one in the selling race. Other high-level executives have sold shares including Mike Callahan, Yahoo’s general counsel, selling approximately $1.35 million worth of stock options.
In an internal memo, Bartz said
“We are the largest media property on the internet. So get out of the sugar low – we have work to do. Stop staring at our navels, stop arguing with each other. Stop debate, debate, debate and let’s focus on the competition.”
In its latest financial results, the company said that revenue for the past three months was down 13% from the same period last year to $1.5billion, while profit rose slightly to $141m.
Bartz’s influence appears to have had little impact on the company’s bottom line so far, however, with her biggest achievement being the agreement earlier this summer to hand over control of Yahoo’s search engine business to Microsoft. Though investor’s reacted negatively to that business deal, we are still not sure where Yahoo is heading.