Semel will assume the role of non-executive chairman and will serve as an adviser to the senior management team.
Susan Decker, exec VP-advertising and publishing, has been named president by the company’s board.
The news of the changes came on the heels of Yahoo’s annual shareholders meeting last week, where Semel conveyed the bad news about the company’s ongoing lackluster performance. Net income for the first quarter decreased 11% to $142 million.
“As we discussed my future goals and plans, I was clear in telling the board of my desire to take a step back sooner rather than later,” Semel said in a live webcast Monday afternoon. “I believe Jerry and Sue, with their superb talents and intense dedication to Yahoo and its people, are the perfect combination to carry us forward. This is the time for new executive leadership, with different skills and strengths, to step in and drive the company to realize its full potential. It is the right thing to do, and the right time is now.”