SAN FRANCISCO - Revised election results from
shareholder meeting reveal far more disenchantment with Chairman Roy Bostock and Chief Executive Jerry Yang than initially reported.
Yahoo! acknowledged a tabulation error late Tuesday by Broadridge Financial Solutions, an independent voting intermediary that processes proxies for banks, brokers and institutions. In this case, Broadridge had been hired by Yahoo!'s largest shareholder, Capital Research and Management, which on Monday challenged the final tally, maintaining that its votes had been undercounted.
The corrected version of the board election results show Yang with 33.7% "withhold" votes, which are essentially equivalent to "no" votes - that's far higher than the 14.6% Yahoo! initially reported at the end of Friday's meeting.
Bostock received the most withhold votes, with 39.6%. That compared to Friday's count of 20.5%. Ron Burkle trailed behind Bostock with 37.9% withhold votes vs. the 18.8% originally reported. Arthur Kern received slightly less withhold votes than Yang but still placed among the highest, with 31.7% vs. the 22.1% from the initial tally.
Bostock, Burkle and Kern had received the most withhold votes at last year's shareholder meeting as well, due to criticism over their roles as members of Yahoo!'s compensation committee.
The majority votes cast in favor of reelecting the board also dropped as a result of Tuesday's revisions. Yang received 66.3% "for" votes instead of the 85.4% reported on Friday. Bostock received 60.4% instead of the 79.5% reported on Friday.
None of the board members fell short of winning a majority vote even with the recount, which means they will hold onto their positions. But the new numbers put more pressure on Yang and the board to deliver on their promises to grow the company and also take away their bragging rights over a sizeable election victory.
Shares of Yahoo! closed Tuesday up 2.3% to $19.82.