The Guardian says “the company defended her actions by saying that the share sales were necessary for tax purposes:
“We are told that they were re-acquired to satisfy tax withholdings,” a spokeswoman said.
If that’s true, Carol and Yahoo should issue a quick statement clarifying the purpose of the sale (which is unusual in any event). The statement should explain with authority what happened, instead of invoking the strangely passive phrase, “we are told.”
(It’s possible Carol needed to raise some cash to pay a tax bill. If so, it seems unlikely that she still had the cash to “re-acquire” the stock after she dumped it. And if she did “re-acquire” the stock, why haven’t the filings shown this?)
Needless to say, it is way too early for Carol to start cashing in on compensation that was supposed to align her long-term interests with those of shareholders. Aside from firing a bunch of people and entering into a widely panned search deal with Microsoft, she has barely done anything yet.