Struggling search engine company Yahoo said on late Thursday that chairman Alfred J. Amoroso has decided not to seek reelection to the board of directors during the 2013 annual meeting of shareholders.
Amoroso, a 63-year-old former IBM Corp executive, said he will remain on the board until the shareholder meeting on June 25, but will no longer serve as chairman, effective immediately. For now, director Maynard Webb, Jr., a former executive at eBay and Gateway, will serve as the company's interim chairman. The Yahoo board will consist of only 10 members following the meeting.
The news shouldn't be surprising. Before signing on as chairman, Amoroso said he would only hold the position for a year to help the company get through a "critical time of transformation".
"I'm very grateful and proud of the progress Yahoo! has made over the past year," said Amoroso. "In that time, Yahoo! hired a great new CEO, brought on a fantastic management team, revitalized the employee base, and has begun to release top notch new products. With Marissa at the helm and the leadership team in place, this is a natural time for me to transition off the board, consistent with what I said a year ago."
Yahoo, which is an acronym for "Yet Another Hierarchical Officious Oracle", was founded in March 1995 and became the most popular search engine during that era. It seemingly paved the way for Google, offering services like email, instant messaging, up-to-date news, shopping and more. Stocks rose to an all-time high of $118.75 a share in January 2000, but crashed down to $4.05 in September 2001 after the dot-com collapse. By 2008, the company was struggling and made several large cuts to the Yahoo staff.
Both Amoroso and Webb joined Yahoo's board 14 months ago after four longtime directors stepped down due to shareholder pressure. These departures included co-founder Jerry Yang, who was the first to go, Brad D. Smith (Intuit) and David Kenny (Weather Channel). Sue James, a former accounting executive, is now Yahoo's longest-serving director.
Serving as chairman, Amoroso led the team that investigated former CEO Scott Thompson who was accused of embellishing academic credentials on his resume five months into his CEO tenure. Amoroso was also instrumental in pulling Marissa Mayer from Google and propelling her into the role of Yahoo CEO.
Reuters reports that since Mayer took the role of Yahoo CEO in July 2012, shares have surged roughly 60-percent. Shares were down 8 cents to $25.12 in after-hours trading on Thursday.