Yahoo! recount 'reveals bigger protest vote'

6th August 2008

A recount of votes cast at last week's Yahoo! shareholder meeting has shown there was a stronger protest vote than had previously been thought, a report suggests.

The internet giant has released new figures which show there was more than double the level of opposition to the reappointment of chief executive officer Jerry Yang to the board than had originally been reported, ITPro says.

It adds that the new twist was revealed after a recount had been requested by a major shareholder, Capital Research Global Investors, having uncovered discrepancies in the results.

The website says Sanford C Bernstein analyst Jeffrey Lindsay has suggested: "The recount somewhat lowers the credibility of the management team.

"Assuming this was all a mistake, it is particularly unfortunate: management doesn't have the mandate they appeared to have had."

Last week, ITPro reported that Jim Friedland, an analyst with Cowen & Co, had predicted the Yahoo! management team would be in for a "verbal beating" at the shareholder meeting.

A recent Connect survey found that the two major concerns about outsourcing services like IT support were 'loss of control' (56 per cent) and 'budget over-runs' (43 per cent)