Yahoo! chief executive and chairman Terry Semel has stepped down after six years to be replaced by co-founder Jerry Yang.

The internet media company has also promoted Susan Decker, who was named as executive vice-president and head of advertiser and publisher group last December, as president of the company.

Mr Semel, who has been under pressure from investors for both the company's stock performance and seeing competitors such as Google surge ahead in digitial media, has made hundreds of millions of dollars in stock options since joining in 2001.

"My immediate and overarching priorities are to realise Yahoo!'s strategic vision by accelerating execution, further strengthening our leadership team and fostering an even stronger culture of winning," said Mr Yang, making it clear future changes are planned.

Mr Semel, who will take the role of non-executive chairman, issued a letter to the Yahoo! board admitting that "none of us is at all satisfied with the company's recent financial performance".

However, he pointed out that the company had "tremendous fundamental strengths" and was buoyed by the launch of the much-delayed new search marketing platform Panama.

"This is the time for new executive leadership, with different skills and strengths, to step in and drive the company to realise its full potential," he added.

Yahoo! director Ed Kozel, speaking on behalf of the board, said that there was "no better person in the world to run Yahoo! now" that Mr Yang, who co-founded the company 12 years ago alongside David Filo.

Ms Decker, who observers say is being groomed for the chief executive role, will assume control of Yahoo!'s business operations including the advertiser and publisher group, international operations and the Connected Life division.

Yahoo! shares rose 3% during late trading in the US yesterday and another 5% in after-hours trading, when the announcement was made.

On an analysts call Mr Yang reportedly dismissed speculation that Yahoo! is interested in being acquired by a larger company.

While news of such interest from Microsoft a few weeks ago led to a brief surge in Yahoo! shares, Mr Yang told investors that he expects his outfit to remain "a vibrant independent company".

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