Teflon Yang

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With Legg Mason's Bill Miller now supporting Jerry Yang and the current Yahoo board, and support for Carl Icahn's board slate seemingly non-existent, it appears that Yahoo is all but guaranteed to win the proxy fight at the upcoming shareholder meeting on August 1st.
Yang, continuing the effort to whittle away the credibility of Icahn and Microsoft, posted a video this morning announcing that Yahoo was launching an advertising campaign on the site that "continues to make our case to stockholders." At the top of the page, Yahoo posts the infamous quote by Icahn last year mentioned in their memo yesterday: "It's hard to understand these technology companies."
At this point, I would be shocked if Icahn stays relevant to anything surrounding Yahoo after the shareholder meeting on August 1st. His attempt to oust Yang has all but failed and Yahoo has painted him in a very negative light to shareholders. They have made it clear that they are willing to make a reasonable deal with Microsoft, selling the whole company for $33 per share, and selling the Asia unit. Icahn, who had previously declared support for the Google partnership when it was made, reversed course later on when he realized his share price was not increasing and decided to team up with Microsoft.
On icahnreport.com, Carl has made it clear that he will not be talking about the proxy fights he engages in, due to the murky legal waters that he would be waddling in.
His latest post today talks about the golden parachute, "a binding agreement between a company and an employee (most often a CEO but in some cases all the employees) detailing considerable benefits for the employee if the employee is terminated or retires." Icahn is critical of the system, especially when it applies to a change in ownership or control of the company because it could cause significant conflicts of interest when the benefits are huge and a manager only wants to sell a company to receive his "parachute." Golden coffins are "illogical," says Carl, and mentions the Wall Street Journal article from last month detailing the lavish and outrageous benefits executives' heirs receive if they die while still working.
--Teflon Travis

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