Insiders Treat Yahoo "Like It's Their Personal ATM"



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By now, you’ve probably heard that new CEO Carol Bartz has already sold $2 million worth of Yahoo shares.That news stems from hedge fund manager Eric Jackson’s list of Yahoo (YHOO) insider stock purchases and stock sales over the last two years. Eric calls the list “a case study in compensation excesses.”

See the insiders who Eric says treat Yahoo “like it’s their personal ATM.” →

Eric will publish his full reaction on TheStreet.com tomorrow. But here’s a preview of his findings:

  • Insiders have bought $67 million in Yahoo! stock in the past two years.  However, of this amount, the vast majority was bought by Carl Icahn for his hedge fund*, which he has already sold (and more — $189 million) in the last 2 weeks.  A small amount of stock was purchased by Michael Murray, Yahoo!’s chief accounting officer who announced last week that he’s leaving the company.  Not including Icahn’s and Murray’s stock purchases, Yahoo! insiders have collectively bought only $103,700 in stock in the past two years.
  • Over the same period, Yahoo! insiders have cashed out $233 million in stock.
  • In those 2 years, Yahoo! insiders have also seen zero strike price options vest which they have yet to sell in the open market but which have a current market value of another $58 million.
  • Therefore, for every dollar of stock purchased by a Yahoo! insider in the last year, they sold stock or received options worth $2,159.

See the insiders who Eric says treat Yahoo “like it’s their personal ATM.” →

Note: Eric only tracked Carl Icahn’s purchases and sales since he’s been a Yahoo board member and the company has had to disclose his transcations to the SEC. Prior to joining the board, Carl acquired tens of millions of dollars worth of Yahoo shares. Of course, all this only re-emphasises Eric’s point that Yahoo insiders sell more shares than they buy.

[slideshow]
[slide
permalink=”ceo-carol-bartz-1″
title=”CEO Carol Bartz”
content=”Total two year stock purchases: $0

Total two year stock sales: $1.92 million

Remaining value of excercised options: $14 million

Shares remaining: 987,142″
image=”http://static.businessinsider.com/image/5237544b02011e4aba3de100/image.jpg”
caption=””
credit=””
credit_href=””
]
[slide
permalink=”board-member-carl-icahn-2″
title=”Board member Carl Icahn”
content=”Total two year stock purchases: $67 million

Total two year stock sales: $190 million

Remaining value of excercised options: $213,000

Shares remaining: 62,873,572

Note: Eric only tracked Carl Icahn’s purchases and sales since he’s been a Yahoo board member and the company has had to disclose his transcations to the SEC. Prior to joining the board, Carl acquired tens of millions of dollars worth of Yahoo shares.

image=”http://static.businessinsider.com/image/f8b9b914a9189248378f2200/image.jpg”
caption=””
credit=””
credit_href=””
]
[slide
permalink=”evp-hilary-schneider-3″
title=”EVP Hilary Schneider”
content=”Total two year stock purchases: $0

Total two year stock sales: $1.1 million

Remaining value of excercised options: $0

Shares remaining: 321,520″
image=”http://static.businessinsider.com/image/a7b9b9141dcaa2499841a000/image.jpg”
caption=””
credit=””
credit_href=””
]
[slide
permalink=”former-ceo-terry-semel-4″
title=”Former CEO Terry Semel”
content=”Total two year stock purchases: $0

Total two year stock sales: $33 million

Remaining value of excercised options: $0

Shares remaining: 0″
image=”http://static.businessinsider.com/image/3d7a6c79d6c971483318c800/image.jpg”
caption=””
credit=””
credit_href=””
]
[slide
permalink=”general-counsel-michael-callahan-5″
title=”General counsel Michael Callahan”
content=”Total two year stock purchases: $0

Total two year stock sales: $2 million

Remaining value of excercised options: $1.7 million

Shares remaining: 785,422″
image=”http://static.businessinsider.com/image/4aa688324d40911d4bc6be7c/image.jpg”
caption=””
credit=””
credit_href=””
]
[slide
permalink=”cto-ari-balogh-6″
title=”CTO Ari Balogh”
content=”Total two year stock purchases: $0

Total two year stock sales: $40,000

Remaining value of excercised options: $4.75 million

Shares remaining: 112,493″
image=”http://static.businessinsider.com/image/6db9b914221d11483db38300/image.jpg”
caption=””
credit=””
credit_href=””
]
[slide
permalink=”semel-appointed-board-member-gary-wilson-7″
title=”Semel-appointed Board member Gary Wilson”
content=”Total two year stock purchases: $19,150

Total two year stock sales: $117,600

Remaining value of excercised options: $256,500

Shares remaining: 369,200″
image=”http://static.businessinsider.com/image/4aa689cae50f4e665f6b572b/image.jpg”
caption=””
credit=””
credit_href=””
]
[slide
permalink=”13-year-board-member-eric-hippeau-8″
title=”13-year board member Eric Hippeau”
content=”Total two year stock purchases: $0

Total two year stock sales: $5.12 million

Remaining value of excercised options: $1 million

Shares remaining: 602,856″
image=”http://static.businessinsider.com/image/66b9b914b8a4364a52a57c00/image.jpg”
caption=””
credit=””
credit_href=””
]
[slide
permalink=”former-chief-accounting-officer-mike-murray-9″
title=”Former chief accounting officer Mike Murray”
content=”Total two year stock purchases: $114,660

Total two year stock sales: $538,669

Remaining value of excercised options: $519,840

Shares remaining: 139,220″
image=”http://static.businessinsider.com/image/9737544b8032ff490c67db00/image.jpg”
caption=””
credit=””
credit_href=””
]
[/slideshow]

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