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Yahoo! Inc. (YHOO), owner of the largest U.S. Web portal, said it doesn’t support the board nominees put forward by shareholder Third Point LLC.
The company has received notice that Third Point and its affiliates intend to nominate four directors, Sunnyvale, California-based Yahoo said today in a filing (YHOO) with the U.S. Securities and Exchange Commission. Shareholders should approve its own 10 board nominees instead, Yahoo said.
“The Third Point nominees are not endorsed by our board of directors,” Yahoo said. “We urge shareholders not to vote any proxy card or voting instruction form that you may receive from or on behalf of the Third Point Entities.”
Yahoo, which has come under investor scrutiny as it has lost ground to rivals Google Inc. (GOOG) and Facebook Inc. (FB), is facing a proxy fight with Third Point, which owns about 5.8 percent of the company and wants to get the four nominees, including its Chief Executive Officer Daniel Loeb, onto the board. New CEO Scott Thompson, who joined in January, is trying to drive a turnaround by focusing on growth and shrinking costs.
Former CEO Carol Bartz, who was ousted in September, received a compensation package of $16.4 million in 2011, an increase from $11.9 million in 2010, according to the filing. Bartz received a $3 million severance payment as part of the package.
Yahoo rose less than 1 percent to $15.57 at the close in New York. The shares have fallen 3.5 percent this year.
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