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Summary:

Mark May is a managing director and senior internet and digital-media research analyst at Needham & Company, LLC, a full-service growth-comp…

Carol Bartz

Mark May is a managing director and senior internet and digital-media research analyst at Needham & Company, LLC, a full-service growth-company investment bank.

My goal in writing this is not to argue that Carol Bartz is the best CEO I’ve come across over my 11 years as an internet analyst on Wall Street. But, while admittedly I’ve not had the luxury of hearing either of their full views (being limited to less than 140 characters of Twitter-ized commentary), the call by Rafat Ali and Chris Dixon — two very smart, accomplished and influential industry figures — for the firing of Yahoo!’s CEO Carol Bartz is shortsighted, in my opinion.

There seem to be either a lot of (or just enough) Bartz haters in media and blogger world these days. But when one looks beneath the surface of management sound bites and financial results out of context, there are some positive things that could be said if drumming up drama was not your primary motivation — that is, here are reasons to be hopeful for Yahoo (NSDQ: YHOO) and its CEO’s strategy. (Note: My firm, Needham & Co., doesn’t have any commercial relationships with Yahoo; it, like many other investment banks that cover internet companies, trades Yahoo stock on behalf of its clients.)

Consider these five positive things that Yahoo has accomplished or pursued under Bartz:

1) Taking on Google: Getting search right is critical. By not optimizing, you

  1. PissedShareholder Monday, September 27, 2010

    Bartz has sacrificed long-term shareholder value for short-term market gain. The only one making money on the company in the last two years has been Carol! She’s enriched herself while gutting the company’s core businesses and focusing what’s left on dying markets or second-fiddle markets where the company doesn’t add value. For 47M+ a year, she can’t even describe the company’s mission in a single sentence that makes sense.

    Where the hell is the plan that will grow sequential revenue?? Maybe they should’ve just had a monkey run the place, at least shareholders would’ve seen another 47M in profits (a 12% increase in FY ’09).

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  2. to PissedStupidShareholder Tuesday, September 28, 2010

    You stupid idiot – in your $47mm compensation # for 2009 you’re including the “future potential equity incentive grants” to were part of her Jan ’09 employment agreement that will only be earned after 2012 if she hits certain milestones, mainly a much higher share price than here. She’s been incentivied for long-term shareholder value, not short-term. It totally counters your stupid comment “PissedShareholder”

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