Yahoo director Robert Kotick’s resignation will take effect after the company’s annual meeting this week, where he will stand for reelection, to comply with a settlement with investor Carl Icahn.
In a filing with U.S. securities regulators on Monday, Yahoo outlined more details of its agreement to appoint Icahn and two of his nominees to its board to avert a proxy fight. Kotick, chief executive of Activision Blizzard, had said earlier this month he would not run on the Yahoo slate.
Under the settlement deal, Yahoo will run a nine-member slate of directors during its shareholder meeting on August 1.
After the meeting, Kotick will resign and Yahoo will expand its board to 11 members, making room for Icahn and two of his candidates.
Icahn must continue to own at least 30 million shares of Yahoo stock to remain on the board.