Carol Bartz was removed from the Chief Executive post by the Yahoo Board of Directors after 2 years of holding it. They have now appointed Timothy Morse for the post until a permanent CEO is appointed.
The news was confirmed after a leaked internal email which Carol sent to all Yahoo employees, stating that she had been ousted –
I am very sad to tell you that I’ve just been fired over the phone by Yahoo’s Chairman of the Board. It has been my pleasure to work with all of you and I wish you only the best going forward.
However, Yahoo confirmed the exit of Bartz in a press release yesterday.
“On behalf of the entire board, I want to thank Carol for her service to Yahoo during a critical time of transition in the company’s history, and against a very challenging macro-economic backdrop,” said Roy Bostock, chairman of Yahoo’s board.
The reason why Yahoo had to sack Carol Bartz was perhaps she lacked experience in advertising and Web 2.0, and wasn’t’ really a “revenue driver”. Now that Tim Morse has been appointed as the CEO (for the time being), analysts say that he would turn out to be “much worse” than Bartz. Both lack the ability to think big and out of the box.
Bartz succeeded Yahoo’s co-founder Jerry Yang as CEO on January 13, 2009, and as a part of the turnaround strategy, amid the tough competition with Google and Facebook, she arbitrarily sacked over a hundred employees and closed some of Yahoo’s less popular services, which could have probably given back a tough competition to its competitors, if improvised appropriately.
Her performance at Yahoo has mostly been effortless. When she was announced as the new CEO of Yahoo in 2009, Yahoo’s stock price closed at $12.41 per share. A year after that, the stock price slightly scaled up to $16.70 (a 32% increase) which was pretty good for Yahoo. However, on the other side, Yahoo’s competitor Google, was almost +100% at the same time. Apple was up by +270%, and Microsoft by +50%. The +32% was good enough for Yahoo, but the performance under her tenure has been lagging.
However, Yahoo’s share in 2011 dipped to 13.1%, while Facebook and Google saw a rise of 17.9 percent and 9.3 percent respectively, and more interestingly, Yahoo’s stock climbed up by 6% (or 81 cents), to $13.72 in the afterhours trading on Tuesday after the removal of Bartz.