The mass exodus of Yahoo! executives has reached its peak – CEO Carol Bartz has been fired by Chairman of the Board, Roy Bostock. Timothy Morse has been named interim CEO, according to a Yahoo! press release titled “Yahoo! Announces Leadership Reorganization.” Though many saw this move coming, the timing was certainly a surprise. Late Tuesday evening, Bartz sent a short note to Yahoo! employees worldwide confirming her firing:
Roy Bostock, Chairman of the Yahoo! Board, said, “The Board sees enormous growth opportunities on which Yahoo! can capitalize, and our primary objective is to leverage the Company’s leadership and current business assets and platforms to execute against these opportunities. We have talented teams and tremendous resources behind them and intend to return the Company to a path of robust growth and industry-leading innovation. We are committed to exploring and evaluating possibilities and opportunities that will put Yahoo! on a trajectory for growth and innovation and deliver value to shareholders.”
Bostock continued, “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. I would also like to express the Board’s appreciation to Tim and thank him for accepting this important role. We have great confidence in his abilities and in those of the other executives who have been named to the Executive Leadership Council.”
(The internal memo sent from Jerry Yang and the Board to Yahoo! employees moments after the announcement can be read in its entirety here.)
The troubles at Yahoo! have been well-documented over the last five years, and the tune did not change under the tenure of Bartz. The revelation by Bartz that her firing was executed over the phone is symbolic of the disastrous corporate messaging and human resource mismanagement that has characterized the company of late. The company has endured one of the greatest brain drains in history, which has only accelerated its downward slide in recent years. The psychological impact of Bartz’s departure – both on investors and employees – will be intriguing to note in the coming days and weeks. Early reactions from the market are favorable – Yahoo! shares are up 5.7 percent in after-hours trading on the news.
It has been speculated that Yahoo! has been actively searching for a replacement for months. Will Yahoo! bring in another outsider or will it promote from within? There is a powerful argument to be made that the high-profile executive exodus over the last two years has left Yahoo! with no alternative but to bring in another outsider to attempt another turnaround.
Read more from the always insightful Kara Swisher at AllThingsD here.
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Trading of Apple shares was halted late Wednesday pending the major breaking news that Steve Jobs, the company’s iconoclast leader has resigned from his long-held position as CEO. Below is the note Mr. Jobs sent to the Apple board and to the Apple community:
To the Apple Board of Directors and the Apple Community:
I have always said if there ever came a day when I could no longer meet my duties and expectations as Apple’s CEO, I would be the first to let you know. Unfortunately, that day has come.
I hereby resign as CEO of Apple. I would like to serve, if the Board sees fit, as Chairman of the Board, director and Apple employee.
As far as my successor goes, I strongly recommend that we execute our succession plan and name Tim Cook as CEO of Apple.
I believe Apple’s brightest and most innovative days are ahead of it. And I look forward to watching and contributing to its success in a new role.
I have made some of the best friends of my life at Apple, and I thank you all for the many years of being able to work alongside you.
After-hours trading of $AAPL resumed shortly thereafter, sending Apple shares down a relatively modest 5 percent. The move would likely have had much greater impact two years ago, as investors have recently priced Jobs’ impending departure into the stock. Business Insider’s Henry Blodget projected the announcement would have sent Apple shares tumbling 25 percent or more just two years ago.
Art Levinson, Chairman of Genentech, released a statement on behalf of Apple’s board: “Steve’s extraordinary vision and leadership saved Apple and guided it to its position as the world’s most innovative and valuable technology company.”
“Steve has made countless contributions to Apple’s success, and he has attracted and inspired Apple’s immensely creative employees and world class executive team. In his new role as Chairman of the Board, Steve will continue to serve Apple with his unique insights, creativity and inspiration.”
Following the announcement of Steve Jobs’ resignation, Apple promptly named COO Tim Cook as the new CEO. Cook led Apple in 2004 and 2009 during Jobs’ medical leave. Cook is known for his calm demeanor, astonishing work ethic and tendency to challenge subordinates with impossible-to-answer questions.
“The Board has complete confidence that Tim is the right person to be our next CEO,” added Levinson. “Tim’s 13 years of service to Apple have been marked by outstanding performance, and he has demonstrated remarkable talent and sound judgment in everything he does.”
Our thoughts are with Steve Jobs and his family, and we wish him well during these challenging times. As a small token of appreciation, we direct you toward Business Insider’s “The Life and Awesomeness of Steve Jobs.”