If Yahoo's fate is still to be acquired then Jerry Yang’s replacement as CEO should be a methodical transition executive with no particular visions of glory, analysts and corporate culture experts say.
Yang, in a move that was widely anticipated (and appreciated by investors) said he would step down as CEO as soon as a replacement could be found.
Yang's decision set off a parlor game in Silicon Valley about who would replace the co-founder – and to what end, given that Yang himself seemed wistful in recent days about the failed Microsoft merger.
“This deal is the most important deal in the history of the company,” said Dr. Marshall Goldsmith, a New York Times bestselling author and coach to some top execs at companies like Ford Motor, Motorola and Getty Images. He says that, in general, companies are not prepared to handle the succession, but Yahoo could follow a similar pattern to some banks on Wall Street.
“They could use more of the Merrill Lynch-Bank of America model, where a CEO comes in like a John Thain who is there, does a transition, manages the transition, the company gets bought by somebody else, then he may or may not stay,” he said.
Yahoo has said that it is looking both inside and outside the company for a replacement, and President Sue Decker might seem to be a logical choice. But Sanford C. Bernstein & Co. analyst Jeffrey Lindsay thinks she is too closely associated with Yahoo’s failures.
“We believe that it is unlikely that the post will be offered to an insider such as President Sue Decker, whose credibility has likely been damaged severely by the company's decline,” his latest report reads.
He thinks that a Microsoft deal is still possible to both Yahoo and Microsoft. It's no secret that outspoken board member Carl Icahn agrees with this mindset, and he is most likely pushing for someone – anyone – who will get the deal done so he can cash in and check out.
But this person would have to either be willing to be only a temporary CEO, who would either leave after an acquisition, or remain as president of a Yahoo division within Microsoft.
“Another possibility would be to get someone, especially if this is looked as very a transitional job, who is perhaps a retired executive who is very respected, has a great track record in the field, and can come in and help manage the process,” said Goldsmith. He gives Jim Barksdale, former CEO of Netscape, as a good example.
If Yahoo isn’t looking to a deal, then it’s a whole different ballgame. They will need a fresh face and star power similar to Steve Jobs to raise the company from the ashes.
Lindsey suggests Jon Miller, former CEO of AOL, whose non-compete agreement with Time Warner is due to expire shortly, and if not him then a Microsoft or Google alumnus.
But what about a former Yahoo-er who had a clear vision for the company and illustrated it in a memo using peanut butter analogies (i.e., the company is spreading itself too thin)?
Brad Garlinghouse left earlier this year along with several other executives, so he may not want to climb back on board a sinking ship.
Regardless of who gets tapped, Yang may not be around long. Analyst Lindsey postulates he "will most likely depart early in the New Year” and Goldsmith believes Yang couldn't bring himself to carry on at the company he co-founded but no longer controlled.
“There would not be a Yahoo if it gets bought. And he would become a
Microsoft employee. And the question is, is that something he really wants to do as a human being. And I would say that’s doubtful.”
Photo: Flickr/yodelanecdotal
