Proxy firms disjointed in support of Yahoo's board

SAN FRANCISCO (Reuters) - Investor advisory firms are split on whether to partially furtherance the re-choice of Yahoo Inc's (YHOO.O: Quote, Profile, Research) refreshment of employers ahead of its every twelve months encounter, but their reviews have less authority since Yahoo struck a deal to avert a proxy battle.

Proxy adviser Glass Lewis & Co has recommended that Yahoo shareholders vote against Chairman Roy Bostock and two extra directors in rally over the company's road record on policymaking pay, and the firm expressed fretfulness over a deal to site militant investor Carl Icahn on its panel.

Glass Lewis noted that Bostock, Ron Burkle and Arthur Kern were on Yahoo's compensation committee in 2007, when the company increased pay for executives even as it performed poorer than rivals, according to a July 23 report obtained by Reuters on Thursday.

Separately, ISS Governance Services, a unit of RiskMetrics (RMG.N: Quote, Profile, Research), recommended in its own report this week that investors vote to re-designate all remaining Yahoo timber associates, including one, Robert Kotick, who asked to step down on Sunday from the boarding.

ISS differed with Yahoo management on a non-binding proposal to be put reticent at the August 1 twelve-monthly consultation, recommending its base of institutional investors vote in favor of a "pay for recital" proposal that Yahoo management has opposed.

"We suppose that Yahoo's compensation practices, in unique the freshly-adopted severance pay plans, as well as the way the sustenance handled negotiations with Microsoft at the first rostrum, are concerning," the ISS report concludes.

Yahoo reached a deal with Icahn earlier this week to make bigger its slat to 11 supporters, agreeing to let him and two of his nominees join to avert a proxy battle at the once yearly engagement. The pact takes drift after the business meeting.

ISS recommends that Yahoo investors desist from voting for Icahn's alternative slate of nominees, but struck a confident note about the force Icahn and his outside nominees can have on the plank in the wake of the proxy settlement with Yahoo.

"We have faith in the settlement appointing Mr. Icahn as a paltry owner representative as well as two of his selected nominees with pertinent industry experience have achieved what most shareholders known as for," ISS said.

But Glass Lewis said the fact that Icahn by this time serves on seven civic company boards was a cause for unease.

"We imagine shareholders would television Mr. Icahn's capacity to offer adequate time and attention to the company," the report advised Yahoo investors.

Icahn launched a proxy battle against Yahoo in May to take along it back to the negotiating slab with Microsoft Corp (MSFT.O: Quote, Profile, Research).

At minimum one minor Yahoo stockholder, Legg Mason fund leader Bill Miller, declined to back Icahn.

While many Yahoo shareholders sought a deal, Microsoft has cast off interest in obtaining all of Yahoo since talks over a $47.5 billion bid collapsed in May.

"It (a merger deal) didn't work out," Microsoft Chief Executive Steve Ballmer said at the company's annual meeting for Wall Street analysts on Thursday. "Fine, we're done. We can move on," he said. But he also said parley could restart later.