World’s Most Overpaid CEO Fired Over the Phone

Carol Bartz & Steve Ballmer announcing their dealsource: flickr

After yesterday’s news item that Google was cleaning its house, Yahoo! decided to do them one better – by getting rid of their CEO, Carol Bartz. Bartz had been Yahoo’s CEO since 2009, making her tenure a brief one, and was named in 2010 as the world’s most overpaid CEO.

Having received millions of shares of stock in Yahoo’s considerable company value and receiving a base salary of $1 million per year, Yahoo Chairman Roy Bostock figured it was time to move on. What’s interesting, however, is the fashion in which Bostock fired Bartz: over the phone. The firing was supposedly “without cause,” although there were some key points that probably led to the decision:

  • The ultimately nonexistent communication in the  relationship between Yahoo and Alibaba. As SEOChat reports, “In August of last year, Alibaba Group sold Alipay to Jack Ma, Alibaba’s founder, chairman and CEO. Many observers saw Alipay as a huge factor in Alibaba’s and Yahoo’s value. Alibaba did not see fit to inform Yahoo of this change in ownership until quite some time later, however. “
  • Not properly utilizing Yahoo’s assets, of which Alibaba is a major part.

The question of where Yahoo goes after this might be answered by a long-standing rumor: a potential buyer for the company. Microsoft heads the list, but News Corp. is another rumored potential buyer. If a sale happens, it will likely happen before the next CEO is hired, which would let the new company have an important say-so in Yahoo’s direction in the future. Yahoo fans will want to pay close attention in the next few weeks and months.

Clickfire News Team

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