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<br /> 701 First Avenue<br /> Sunnyvale, CA 94089<br /> NOTICE OF ANNUAL MEETING OF SHAREHOLDERS<br /> To Be Held on July 12, 2012<br /> We will hold the annual meeting of shareholders of Yahoo! Inc., a Delaware corporation (the “Company”),<br /> at the Santa Clara Marriott, located at 2700 Mission College Boulevard, Santa Clara, California, on July 12,<br /> 2012, at 8:00 a.m., local time, for the following purposes:<br /> 1. To elect to the Board of Directors the eleven director nominees named in the attached proxy statement<br /> to serve until the 2013 annual meeting of shareholders and until their respective successors are elected<br /> and qualified or their earlier death, resignation or removal;<br /> 2. To approve, on an advisory basis, the Company's executive compensation;<br /> 3. To amend the Company's 1995 Stock Plan as described in the attached pro<a title="YHOO-20120606-PR-AM page 1" href="http://viewer.zmags.com/publication/f54e933d?page=1"> 701 First Avenue Sunnyvale, CA 94089 NOTICE </a> <a title="YHOO-20120606-PR-AM page 2" href="http://viewer.zmags.com/publication/f54e933d?page=2"> TABLE OF CONTENTS QUESTIONS AND ANSWERS ABOUT TH</a> <a title="YHOO-20120606-PR-AM page 3" href="http://viewer.zmags.com/publication/f54e933d?page=3"> 701 First Avenue Sunnyvale, CA 94089 P</a> <a title="YHOO-20120606-PR-AM page 4" href="http://viewer.zmags.com/publication/f54e933d?page=4"> Q: How does the Board recommend I vote on these</a> <a title="YHOO-20120606-PR-AM page 5" href="http://viewer.zmags.com/publication/f54e933d?page=5"> for admission. If you are a beneficial holder, yo</a> <a title="YHOO-20120606-PR-AM page 6" href="http://viewer.zmags.com/publication/f54e933d?page=6"> Q: What is the deadline for voting my shares if</a> <a title="YHOO-20120606-PR-AM page 7" href="http://viewer.zmags.com/publication/f54e933d?page=7"> Because the number of director nominees timely no</a> <a title="YHOO-20120606-PR-AM page 8" href="http://viewer.zmags.com/publication/f54e933d?page=8"> Q: Where can I find the voting results of the a</a> <a title="YHOO-20120606-PR-AM page 9" href="http://viewer.zmags.com/publication/f54e933d?page=9"> and must comply with the other requirements speci</a> <a title="YHOO-20120606-PR-AM page 10" href="http://viewer.zmags.com/publication/f54e933d?page=10"> PROPOSAL NO. 1 ELECTION OF DIRECTORS </a> <a title="YHOO-20120606-PR-AM page 11" href="http://viewer.zmags.com/publication/f54e933d?page=11">Nominees With regard to the election to ta</a> <a title="YHOO-20120606-PR-AM page 12" href="http://viewer.zmags.com/publication/f54e933d?page=12"> · Consumer Internet experience · Digital m</a> <a title="YHOO-20120606-PR-AM page 13" href="http://viewer.zmags.com/publication/f54e933d?page=13"> Biographical Descriptions Set forth belo</a> <a title="YHOO-20120606-PR-AM page 14" href="http://viewer.zmags.com/publication/f54e933d?page=14"> providing weather news and data. He served as Pre</a> <a title="YHOO-20120606-PR-AM page 15" href="http://viewer.zmags.com/publication/f54e933d?page=15"> due to his extensive senior leadership experience</a> <a title="YHOO-20120606-PR-AM page 16" href="http://viewer.zmags.com/publication/f54e933d?page=16">Senior Director and Global Leader of the firm's Me</a> <a title="YHOO-20120606-PR-AM page 17" href="http://viewer.zmags.com/publication/f54e933d?page=17"> The Board's independence determinations inc</a> <a title="YHOO-20120606-PR-AM page 18" href="http://viewer.zmags.com/publication/f54e933d?page=18"> The Audit Committee is governed by a charter</a> <a title="YHOO-20120606-PR-AM page 19" href="http://viewer.zmags.com/publication/f54e933d?page=19"> The Compensation Committee also reviews an</a> <a title="YHOO-20120606-PR-AM page 20" href="http://viewer.zmags.com/publication/f54e933d?page=20"> Under its charter, the functions of the</a> <a title="YHOO-20120606-PR-AM page 21" href="http://viewer.zmags.com/publication/f54e933d?page=21"> The Nominating/Governance Committee may re</a> <a title="YHOO-20120606-PR-AM page 22" href="http://viewer.zmags.com/publication/f54e933d?page=22"> The Board's Role in Risk Oversight Our Bo</a> <a title="YHOO-20120606-PR-AM page 23" href="http://viewer.zmags.com/publication/f54e933d?page=23"> Code of Ethics The Board has adopted a </a> <a title="YHOO-20120606-PR-AM page 24" href="http://viewer.zmags.com/publication/f54e933d?page=24"> successors to the position of Chairman of the Boa</a> <a title="YHOO-20120606-PR-AM page 25" href="http://viewer.zmags.com/publication/f54e933d?page=25"> vesting schedule applicable to the most recent ro</a> <a title="YHOO-20120606-PR-AM page 26" href="http://viewer.zmags.com/publication/f54e933d?page=26">Director Compensation Table—2011 A dir</a> <a title="YHOO-20120606-PR-AM page 27" href="http://viewer.zmags.com/publication/f54e933d?page=27"> (4) The number of outstanding options held by e</a> <a title="YHOO-20120606-PR-AM page 28" href="http://viewer.zmags.com/publication/f54e933d?page=28"> Required Vote Each of the directors will </a> <a title="YHOO-20120606-PR-AM page 29" href="http://viewer.zmags.com/publication/f54e933d?page=29"> </a> <a title="YHOO-20120606-PR-AM page 30" href="http://viewer.zmags.com/publication/f54e933d?page=30"> · The Compensation Committee retains and, in s</a> <a title="YHOO-20120606-PR-AM page 31" href="http://viewer.zmags.com/publication/f54e933d?page=31"> PROPO</a> <a title="YHOO-20120606-PR-AM page 32" href="http://viewer.zmags.com/publication/f54e933d?page=32"> amended and restated 1995 Stock Plan document by </a> <a title="YHOO-20120606-PR-AM page 33" href="http://viewer.zmags.com/publication/f54e933d?page=33"> the Exchange Act and Section 162(m). A committee </a> <a title="YHOO-20120606-PR-AM page 34" href="http://viewer.zmags.com/publication/f54e933d?page=34"> Dividend Equivalents Dividend equivalents</a> <a title="YHOO-20120606-PR-AM page 35" href="http://viewer.zmags.com/publication/f54e933d?page=35"> Adjustments Upon Changes in Capitalization, Disso</a> <a title="YHOO-20120606-PR-AM page 36" href="http://viewer.zmags.com/publication/f54e933d?page=36"> Transfer Restrictions Subject to certain</a> <a title="YHOO-20120606-PR-AM page 37" href="http://viewer.zmags.com/publication/f54e933d?page=37"> deferred is taxed when paid. In each of the foreg</a> <a title="YHOO-20120606-PR-AM page 38" href="http://viewer.zmags.com/publication/f54e933d?page=38"> (1) Includes stock appreciation rights. As of M</a> <a title="YHOO-20120606-PR-AM page 39" href="http://viewer.zmags.com/publication/f54e933d?page=39"> </a> <a title="YHOO-20120606-PR-AM page 40" href="http://viewer.zmags.com/publication/f54e933d?page=40"> General The maximum number of shares of</a> <a title="YHOO-20120606-PR-AM page 41" href="http://viewer.zmags.com/publication/f54e933d?page=41"> Adjustments Upon Changes in Capitalization </a> <a title="YHOO-20120606-PR-AM page 42" href="http://viewer.zmags.com/publication/f54e933d?page=42"> share limit set forth in the Directors' Plan is n</a> <a title="YHOO-20120606-PR-AM page 43" href="http://viewer.zmags.com/publication/f54e933d?page=43"> Aggregate Past Grants Under the 1996 Directors' S</a> <a title="YHOO-20120606-PR-AM page 44" href="http://viewer.zmags.com/publication/f54e933d?page=44"> Required Vote; Interests of Directors and Executi</a> <a title="YHOO-20120606-PR-AM page 45" href="http://viewer.zmags.com/publication/f54e933d?page=45"> PRO</a> <a title="YHOO-20120606-PR-AM page 46" href="http://viewer.zmags.com/publication/f54e933d?page=46">BENEFICIAL OWNERSHIP OF PRINCIPAL SHAREHOLDERS AND</a> <a title="YHOO-20120606-PR-AM page 47" href="http://viewer.zmags.com/publication/f54e933d?page=47"> otherwise indicated in the footnotes to th</a> <a title="YHOO-20120606-PR-AM page 48" href="http://viewer.zmags.com/publication/f54e933d?page=48">(11) Includes 10,941 shares subject to vested but </a> <a title="YHOO-20120606-PR-AM page 49" href="http://viewer.zmags.com/publication/f54e933d?page=49">EQUITY COMPENSATION PLAN INFORMATION Th</a> <a title="YHOO-20120606-PR-AM page 50" href="http://viewer.zmags.com/publication/f54e933d?page=50">OUR EXECUTIVE OFFICERS Executive officers</a> <a title="YHOO-20120606-PR-AM page 51" href="http://viewer.zmags.com/publication/f54e933d?page=51">EXECUTIVE OFFICER COMPENSATION AND OTHER MATTERS </a> <a title="YHOO-20120606-PR-AM page 52" href="http://viewer.zmags.com/publication/f54e933d?page=52"> · Following the termination of Ms. Bartz's emp</a> <a title="YHOO-20120606-PR-AM page 53" href="http://viewer.zmags.com/publication/f54e933d?page=53"> Base salary levels are consistent with </a> <a title="YHOO-20120606-PR-AM page 54" href="http://viewer.zmags.com/publication/f54e933d?page=54"> executive compensation comparisons among peer com</a> <a title="YHOO-20120606-PR-AM page 55" href="http://viewer.zmags.com/publication/f54e933d?page=55"> executives' performance and peer group data for b</a> <a title="YHOO-20120606-PR-AM page 56" href="http://viewer.zmags.com/publication/f54e933d?page=56"> · If both the Company's revenue ex-TAC growth </a> <a title="YHOO-20120606-PR-AM page 57" href="http://viewer.zmags.com/publication/f54e933d?page=57"> believes that performance goals should be made no</a> <a title="YHOO-20120606-PR-AM page 58" href="http://viewer.zmags.com/publication/f54e933d?page=58"> the Company's strategic review, and for their out</a> <a title="YHOO-20120606-PR-AM page 59" href="http://viewer.zmags.com/publication/f54e933d?page=59"> three-year period. The vesting of each of the per</a> <a title="YHOO-20120606-PR-AM page 60" href="http://viewer.zmags.com/publication/f54e933d?page=60"> 2011. For purposes of and in accordance with the </a> <a title="YHOO-20120606-PR-AM page 61" href="http://viewer.zmags.com/publication/f54e933d?page=61"> operating margin for 2011 was 17.6 percent. In de</a> <a title="YHOO-20120606-PR-AM page 62" href="http://viewer.zmags.com/publication/f54e933d?page=62"> Company conducted its search for a new Chief Exec</a> <a title="YHOO-20120606-PR-AM page 63" href="http://viewer.zmags.com/publication/f54e933d?page=63"> Benefits under the Change-in-Control Seve</a> <a title="YHOO-20120606-PR-AM page 64" href="http://viewer.zmags.com/publication/f54e933d?page=64"> In addition to the above structural change</a> <a title="YHOO-20120606-PR-AM page 65" href="http://viewer.zmags.com/publication/f54e933d?page=65"> The revised policy provides that the Chief Execut</a> <a title="YHOO-20120606-PR-AM page 66" href="http://viewer.zmags.com/publication/f54e933d?page=66">Summary Compensation Table—2009–2011 The fo</a> <a title="YHOO-20120606-PR-AM page 67" href="http://viewer.zmags.com/publication/f54e933d?page=67"> (3) For restricted stock unit grants where the </a> <a title="YHOO-20120606-PR-AM page 68" href="http://viewer.zmags.com/publication/f54e933d?page=68"> (8) Mr. Morse served as interim Chief Executive</a> <a title="YHOO-20120606-PR-AM page 69" href="http://viewer.zmags.com/publication/f54e933d?page=69">Grants of Plan-Based Awards—2011 The foll</a> <a title="YHOO-20120606-PR-AM page 70" href="http://viewer.zmags.com/publication/f54e933d?page=70">on Yahoo!'s actual revenue ex-TAC growth rate and </a> <a title="YHOO-20120606-PR-AM page 71" href="http://viewer.zmags.com/publication/f54e933d?page=71"> In October 2010, the Company entered into</a> <a title="YHOO-20120606-PR-AM page 72" href="http://viewer.zmags.com/publication/f54e933d?page=72"> scheduled to vest in equal annual installments on</a> <a title="YHOO-20120606-PR-AM page 73" href="http://viewer.zmags.com/publication/f54e933d?page=73">Outstanding Equity Awards at Year-End—2011 The </a> <a title="YHOO-20120606-PR-AM page 74" href="http://viewer.zmags.com/publication/f54e933d?page=74"> (1) In accordance with the terms and conditions</a> <a title="YHOO-20120606-PR-AM page 75" href="http://viewer.zmags.com/publication/f54e933d?page=75">Option Exercises and Stock Vested—2011 The</a> <a title="YHOO-20120606-PR-AM page 76" href="http://viewer.zmags.com/publication/f54e933d?page=76"> entitled to benefits triggered by a termination o</a> <a title="YHOO-20120606-PR-AM page 77" href="http://viewer.zmags.com/publication/f54e933d?page=77"> if, within 12 months following a change in contro</a> <a title="YHOO-20120606-PR-AM page 78" href="http://viewer.zmags.com/publication/f54e933d?page=78">a target number of 38,268 units would remain outst</a> <a title="YHOO-20120606-PR-AM page 79" href="http://viewer.zmags.com/publication/f54e933d?page=79"> (d) treatment of other grants during the t</a> <a title="YHOO-20120606-PR-AM page 80" href="http://viewer.zmags.com/publication/f54e933d?page=80"> In connection with receiving the severance </a> <a title="YHOO-20120606-PR-AM page 81" href="http://viewer.zmags.com/publication/f54e933d?page=81">AUDIT AND FINANCE COMMITTEE REPORT The Aud</a> <a title="YHOO-20120606-PR-AM page 82" href="http://viewer.zmags.com/publication/f54e933d?page=82">FEES FOR SERVICES RENDERED BY INDEPENDENT </a> <a title="YHOO-20120606-PR-AM page 83" href="http://viewer.zmags.com/publication/f54e933d?page=83">RELATED PARTY TRANSACTION POLICY The</a> <a title="YHOO-20120606-PR-AM page 84" href="http://viewer.zmags.com/publication/f54e933d?page=84">misappropriation of corporate assets, or cont</a> <a title="YHOO-20120606-PR-AM page 85" href="http://viewer.zmags.com/publication/f54e933d?page=85">OTHER MATTERS The Board has not receiv</a> <a title="YHOO-20120606-PR-AM page 86" href="http://viewer.zmags.com/publication/f54e933d?page=86"> yahoo.com 002</a>