Re:Yahoo In More Turmoil: Is CEO Mayer Running Out Of Options?
by greenyoda on Friday April 18, 2014 @02:44AM
(#7608201)
"In her latest move, Mayer is now culling the board. Yahoo has announced that John Hayes, EVP and CMO of American Express and Peter Liguori, CEO of Tribune Company will be leaving the board. This now only leaves five: CEO Mayer, Chairman Maynard Webb, retired E&Y partner Sue James, former IAC CFO Thomas IcInerney as well as tech entrepreneur Max Levchin."
I thought that in a public company, the board of directors is elected by the shareholders and the CEO reports to the board of directors. So how can the CEO arbitrarily remove members of the board? (Yahoo board members own a minuscule percentage of the company's stock; most of it is owned by institutional investors and mutual funds.[1]) Could someone who understands corporate governance better than I do please explain how this could happen?
I thought that in a public company, the board of directors is elected by the shareholders and the CEO reports to the board of directors. So how can the CEO arbitrarily remove members of the board? (Yahoo board members own a minuscule percentage of the company's stock; most of it is owned by institutional investors and mutual funds.[1]) Could someone who understands corporate governance better than I do please explain how this could happen?
[1] http://finance.yahoo.com/q/mh?s=YHOO+Major+Holders