The company confirmed that Roy Bostock, another director will take Semel’s place as nonexecutive chairman of the 10-member board, according to the AP.
Semel had decided to give up the position many months ago but stayed as a courtesy until a successor was chosen.
“With the company moving forward under new leadership, I believe this is an appropriate time for me to step down from the board,” he stated. Semel has not been involved in the company on a daily operational basis since Jerry Yang assumed his position as CEO in July.
Bostock was part of the team that faced heat from shareholders for rewarding Semel with a package valued at $71.1 million in 2006 at a time when the company’s market value had dropped by 35% ($20 billion).
Almost one third of company shareholder voted against Bostock at the annual meeting.
“Roy is an outstanding executive who has decades of experience in the advertising industry – an area that is more important than ever to Yahoo’s business and our long-term success,” Yang said.
In his first year with the company, Semel cut about 650 jobs and attempted to transform Yahoo into an entertainment and information center while also heavily focusing on search.
At first the firm thrived with stocks just about quadrupling in the first 4 ½ years, however over the past two years Yahoo has suffered in the marketplace to a degree that has raised questions over Semel’s ability to continue to read the online ad market.