Capital Research Is Looking For A Recount Of Yahoo! Shareholder Votes; Ironfire Capital President Eric Jackson Points Out Vote Controversy
On Friday August 1, Yahoo! Inc. (NASDAQ:YHOO) had their annual shareholder meeting. At this meeting, shareholders are allowed to vote whether they would be interested in having the current Board of Directors allowed for re-election. A group of shareholders representing 76% of Yahoo!’s 1.38 billion shares voted in favor of Yahoo!’s 9 current directors.
Capital Research Global Investors, a major Yahoo! shareholder wants a recount of the votes. Capital Research has been highly critical of Jerry Yang’s performance, especially when handling the Microsoft Corporation (NASDAQ:MSFT) acquisition offer. Yang received 85% vote support after the shareholder meeting.
At the annual shareholder meeting, President of Ironfire Capital Eric Jackson challenged Yang on issues such as why Overture was sold to Yahoo! Japan for $13 million after buying it for $400 million. Jackson also challenged Yahoo! President Sue Decker on the number of Boards that she serves on. And Jackson asked Roy Bostock would step down after receiving a 34% shareholder vote against him.
Here is an excerpt from Eric Jackson’s blog regarding the vote count:
The press release following last Friday’s Yahoo! Annual Meeting suggested that shareholders had more strongly supported Yahoo!’s board compared to 2007. However, there appear to be 200 million Yahoo! shares (on average) which were not counted in this year’s election compared to the 2007 and 2006 votes. If those 200 million shares had been voted for Icahn’s proxy (before he called a truce with Yahoo!), they would have been thrown out. If you assume those votes would have gone “against” most or all of the incumbent Yahoo! board, Friday’s results might have been just as or more negative this year compared to last.
A Yahoo! representative confirms that no shareholder vote errors were made during the tally.