Bartz quits Yahoo's board

Sep 12, 2011, 17:17 GMT

San Francisco - Carol Bartz knows when she's not wanted.

The former Yahoo CEO, who was unceremoniously sacked last week after failing to revive the floundering internet pioneer, has now resigned her seat on Yahoo's board.

Yahoo announced her resignation late Sunday, just two days after Bartz, 63, had vowed in an interview with Fortune.com that she would stay on as a Yahoo director in order to show her loyalty to the company9s workers.

The ouster of Bartz far from ends the troubles facing the Yahoo board.

They still are far from finding a permanent replacement for the Silicon Valley veteran, and are also facing calls from shareholder activists for them to resign, given the company's poor showing in recent years, when it has failed to take any effective steps to halt its demise in the face of challenges from Google and Facebook.

'It is time that certain members of this board were held accountable for its past failures and their individual roles,' wrote Daniel Loeb in a letter to Yahoo on behalf of Third Point, an investment firm which owns a 5.1 per cent stake in the company.

'We are adamant that reconstituting the board is crucial to provide any serious CEO candidate or strategic counterparty with a stable and responsive governance structure.'

Loeb blamed Yahoo chairman Ray Bostock for hiring Bartz and for rejecting a 47.8-billion-dollar takeover bid from Microsoft in 2008 - since when Yahoo's value has dropped to just 16 billion dollars.

Read more about Yahoo