Yahoo! announced a settlement with the activist shareholder Starboard Value to name four new independent directors to its board, including Starboard's CEO Jeffrey Smith. The other new members are investment banker Tor R. Braham, who worked previously in technology M&A at Deutsche Bank and Credit Suisse; the media executive Eddy W. Hartenstein, who was previously CEO of DirecTV, the Tribune Company and the LA Times; and Richard S. Hill, the former chairman of Tessera Technoliges.
They will join the board immediately, and Smith will also join the Strategic Review Committee. As part of the agreement, Starboard has withdrawn its proposal to the Yahoo shareholders meeting for an alternative slate of directors. At the annual meeting, two incumbent directors will not stand for re-election, so that following the AGM the board will have 11 members.
Yahoo CEO Marissa Mayer said "this constructive resolution will allow management and the board to keep our focus on our extremely important objectives". Starboard, which holds almost 2 percent of Yahoo shares, has been lobbying the company for the past year to change its strategy.
