Third Point owns five percent of Yahoo and they're sick of watching it go down the drain. In a scathing letter, the hedge fund's chief executive Daniel Loeb calls for the "prompt" resignation of Yahoo chairman Roy Bostock and three directors and demands "reconstituted board with new directors who will bring fresh eyes, relevant industry expertise and increased investor alignment to the table is immediately necessary." The letter continues, "If you look at the board, it seems to me like you have more people with experience at airlines than you do at Internet companies." Indeed, only one of Yahoo's board members, Akamai Technologies president David Kenny, comes from an internet company.
"Shareholders, understandably, have been very disappointed in the way the company has been run and the stock has performed over last couple of years," Standard & Poor's analyst Scott Kessler told Reuters. "It was only a matter of time before something like this happened."
In fact, calls for Yahoo's entire board to resign came just a few hour after Bostock fired CEO Carol Bartz over the phone on Tuesday evening. "There is one place Yahoo can easily finish first: the company with the worst and most ineffectual board with the spine of a centipede," wrote tech blogging veteran Om Malik the following morning. "I have not been a fan of Yahoo's board for a long time and nothing really has changed my mind. Even before the firing of Carol Bartz, Yahoo's board has been taking actions befitting a coalition government."
And of course, Bartz also has lots of angry, expletive-laden things to say about the board.
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