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.
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%.
I know a couple Yahoo employees who are, to put it nicely, disillusioned. News of layoffs now have them looking for other employment. This summer’s hopeful mood had gone by the wayside and turned into distrust.
Yang has lost any credibility he had with employees and they, en mass, are looking elsewhere. News that he paid people to help him lose them money and cost them jobs has many laughing is disgust. They now, too a person have lost faith in their leader to resurrect the company and its stock price.
Watch the brain drain begin…
Disclosure (“none” means no position):None
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