It's gotta hurt when you step down from a company you've been running since May 2001 and the stock jumps 7% in response. Terry Semel is now the former CEO of Yahoo while one of the co-founders of the search engine, Jerry Yang is taking his place. Semel's departure follows flak from shareholders as well as the poor performance of Yahoo!'s brand over Google. However, as with all high-level executives Semel will remain with Yahoo as a non-executive chairman.
Yahoo lost a lot of steam after News Corp. bought out MySpace and Google bought YouTube and is struggling to catch up to its competitors. Yang wants to differentiate Yahoo from other brands like Google as well as put more money into researching new technologies and innovations.
Yahoo also expects to earn between $1.2 billion and $1.3 billion for the second quarter of 2007. Hear that folks, your company can be making a billion dollars, but it still won't be enough for your fat cat investors. You get the boot. Semel was only recieving a salary of $1 a year, but now gets around $70 million in stock options as compensation. If you needed any more proof that the Internet makes absolutely no sense, here you go: In the Internet Business, you make money when you get fired.
CNNMoney: Semel Out as Yahoo! CEO