News Brief

Top Advisory Firm Endorses Yahoo Board

A leading shareholder advisory firm backed the reelection of Yahoo's existing board of directors, making it more unlikely that the entire board would be removed for rejecting Microsoft's $47.5 billion takeover offer this spring.

RiskMetrics ISS found that Yahoo's recent settlement with dissident investor Carl Icahn would be sufficient to protect shareholder interests in the next year.

Under the agreement that avoided a showdown at the company's Aug. 1 annual meeting, Icahn and two members of his proposed slate of directors will join an expanded Yahoo board.

Another proxy advisory firm, Glass Lewis & Co., is recommending that shareholders vote against three Yahoo directors: Chairman Roy Bostock, Ron Burkle and Arthur Kern. The three were opposed by more than 30% of Yahoo shareholders at last year's annual meeting.--Mark Walsh

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