A large Yahoo Inc. shareholder has asked for an examination of Friday's shareholder vote, suggesting that more opposition to Chief Executive Jerry Yang should have been recorded.Capital Research Global Investors has asked independent vote counter Broadridge Financial Solutions to look into the results of the closely watched election, the fund said Monday.
Capital Research, which owns at least 6% of Yahoo, and Capital World Investors, a separately managed but related fund which controls around 10% of the Sunnyvale, Calif., Internet company, had advised its funds to withhold votes for Mr. Yang to renew his position on the company's board, a person familiar with the matter said. A spokesman for Capital World declined to comment.
Yahoo said Friday that Mr. Yang received support from 85% of shares voted in the election, a higher share than seems likely if all votes had been cast as the Capital funds recommended. A spokeswoman for Broadridge declined comment.
A person familiar with the matter says it appears possible that Broadridge could have made a mistake -- but if so, the impact on the total vote would have been relatively minor. A separate person familiar with the discrepancy said an explanation isn't likely before Tuesday.
Yahoo said in a statement: "The independent inspector of elections certified the results of the election and Yahoo accurately announced those results. Yahoo didn't participate in the execution of the votes and was not a party to any errors which may have been made either by a voting institution or a proxy processing intermediary acting on behalf of banks, brokers and institutions."
Yahoo's Friday vote was closely watched as a barometer of shareholder opinion of Mr. Yang, who has faced intense criticism from investors who believed he botched negotiations to sell all or parts of the company to Microsoft Corp.
By: Jessica Vascellaro
Wall Street Journal; August 5, 2008
