Yahoo Chief Technology Officer Farzad Nazem is retiring from the Web portal and search company after 11 years, effective June 8, the company and Nazem said on Wednesday.
His departure leaves two key posts empty at Yahoo after the company restructured last year to better compete with Web search leader Google.
Yahoo co-founder Jerry Yang will oversee Yahoo's technology group until the company finds a replacement for Nazem. Yahoo also is looking for someone to lead its products group.
Nazem, 45, who joined Yahoo in early 1996, was made head of one of three groups as part of the company's restructuring in December.
He was charged with developing the next advertising platform beyond Yahoo's Panama project, the company's upgraded Web advertising system targeting Google.
Yahoo spokeswoman Helena Maus said Nazem's decision had nothing to do with Panama's performance -- which analysts say has not had as significant an impact as hoped -- and that he had been considering leaving for months.
Nazem said in a blog post he decided to retire after 26 years in the technology industry, but did not want to do so until the introduction of Panama, which the company launched in February.
Nazem will also receive his salary through the end of June and stock options granted in 2003, 2005 and 2006 will fully vest when he steps down. His right to exercise those options along with some granted in 1999 will extend for three years, Yahoo said in a regulatory filing.
His annual salary for 2007 was about $500,000, according to a past Yahoo filing.
"It was very important to me to drive all the way to my last day here at Yahoo without distractions of an announcement like this," he said. "So we chose to make the announcement and my end date as close as possible."
Yahoo shares fell to $28.10 in extended trading from a close of $28.38 on Nasdaq.