by Alyssa Oursler | August 10, 2012 11:26 am
After implementing morale-boosting changes a few weeks ago, there is now talk that Marissa Mayer may be making some changes that won’t be so well-received.
Recently-released regulatory documents show that the newly-hired CEO of Yahoo (NASDAQ:YHOO) is thinking about doing away with the multibillion-dollar payout to investors scheduled for later in the year.
Yahoo had made a pledge to distribute the majority of its after-tax proceeds to shareholders — more than $4 billion. That plan was confirmed in a conference call held after Mayer was hired.
Now, though, Mayer is re-assessing the company and trying to find the best way to turn around the fixer-upper tech dinosaur — which isn’t going to be easy — and give it more long-term shareholder value. Some key will be improving revenue growth, spurring product innovation and helping the company’s stock price.
The CEO — who is also expecting her first child — was lured away from Google (NASDAQ:GOOG) last month with a huge pay package to make her the company’s fifth chief in five years.
The question remains whether the potential strategy would indeed help get the company back on track, or whether it would just alienate investors.
Shares were off 5% by noon today on the news.
Source URL: https://investorplace.com/2012/08/new-yahoo-ceo-may-nix-shareholder-payout/
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