• Bloomberg , Friday, January 23, 2009 11:45 AM

As one of her first moves since joining Yahoo as CEO, Carol Bartz froze annual pay raises as the Web giant tries to cope with a declining display advertising market.

According to Bloomberg, the freeze doesn't affect Yahoo's annual bonus program and some workers, including those who get promoted.

Bartz took over as CEO earlier this month, replacing Jerry Yang. Faced with a contracting economy, Bartz is looking for ways to fuel growth at Yahoo after Yang walked away last year from several takeover offers for the company from Microsoft Corp. In early Friday trading, Yahoo was priced at $11.08. The stock has fallen 43% this year.

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