Yang's Real Problem Now?: His Own Employees
Oct 22, 2008

Not only has Yahoo's (YHOO) Jerry Yang cost investors a small fortune by his rebuttle of Microsoft's (MSFT) overtures, he he cost his own employees a bundle. They, like shareholders are less than pleased.


From the WSJ:

Now that Jerry Yang is planning to cut 10% of Yahoo's work force, he might want to contemplate saving a bit more money by firing some of his advisers.
[Yahoo's daily share price]
Not only did the Yahoo CEO end up turning down Microsoft's $33-a-share offer for his company, a price that now feels like a distant memory, but he paid through the nose for advice on doing so.
Yahoo disclosed late Tuesday in its third-quarter earnings release that it spent $37 million on advisory fees in the third quarter - a million dollars more than it had spent on advice over the previous two quarters combined.
The amount was big enough to make a significant impact on Yahoo's operating income, which fell 53% to $70 million in the quarter. Without the fees, Yahoo's operating income would have been down only - yes, only - 28.6%.