Yahoo and Brocade Face C-Suite Shake Ups
Yahoo! Inc. (NASDAQ:YHOO) held its annual shareholder meeting Thursday, re-electing all of its directors and approving a proposal for an annual shareholder vote on executive compensation. But during the question-and-answer session CEO Carol Bartz was peppered with questions from dissatisfied shareholders. One was concerned that she was a “lame-duck CEO” soon to be replaced, though Bartz quickly dispelled that rumor. Another expressed concern that Facebook and Google (NASDAQ:GOOG) were catching up to Yahoo in terms of U.S. display advertising revenue, Yahoo’s bread and butter, to which responded with a distinction between Facebook’s and Google’s “little snippet ads” and Yahoo’s larger “brand advertising”.
Despite a share dip of 10% this year, Bartz maintains that Yahoo continues to draw in the largest internet audience in the U.S., and has doubled their operating margins, earnings per share, and returns on invested capital. However, she also noted that search advertising revenue was down, in part because 12% of their ad revenue now goes to their new partner, Microsoft (NASDAQ:MSFT). Furthermore, negotiations with Asian search engine Alibaba over the recent ownership transfer of their payments unit, Alipay, are ongoing as Yahoo tries to come to an agreement on compensation for Alibaba, in which Yahoo owns a 40% stake. Bartz did not address rumors that Yahoo might put in a bid for Hulu (NASDAQ:NWSA) (NASDAQ:CMCSA) (NYSE:DIS), which recently went on the market, though she did say that Yahoo’s own online video offerings, which include original programming, have more viewers than all of Hulu.
In other news, CFO Richard Deranleau has resigned from his position at Brocade Communications Systems Inc. (NASDAQ:BRCD). Brocade only announced his departure today though his resignation was effective on June 20. The title of chief financial officer now falls to Dan Fairfax, who has been Brocade’s VP of global services since August 2009.